Market watch: Fuelled by cement stocks, bourse closes in the black

Benchmark KSE-100 index rises 25.91 points.

KARACHI: The stock market continued its upward march on Monday, though at a markedly reduced pace, led mostly by shares of cement companies.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.10% or 25.91 points to end at 25,283.96 points.

According to Raza Rawjani of Elixir Securities, the equities closed marginally in the black with several institutions opting to remain on the sidelines ahead of the year-end.

Volumes too were on the lower side with most activity seen in second-tier cement companies, which closed with good gains. These included Maple Leaf (+3.6%), Fauji Cement (+4.2%) and Pioneer Cement (+2.8%), he said.



Rawjani observed that, on the other hand, reports of gas curtailment to Fauji Fertiliser Bin Qasim pushed the stock down 0.5% and its parent Fauji Fertiliser also fell 0.8%.

Pakistan Telecommunication Company (-3.8%) continued to trade negative for a second consecutive session after China Mobile’s entry into the long distance and international (LDI) segment, which is expected to intensify competition in the industry.

As smaller textile players continued to rally on the award of GSP Plus status, Nishat Mills closed 1.4% lower as investors booked profits in the company ahead of year-end, Rawjani said.

Ovais Ahsan of JS Global Capital pointed out that the market closed slightly higher due to support from heavyweights MCB (+0.9) and Oil and Gas Development Company (+0.8), which kept bears at bay.

“Food and consumer stocks were also prominent gainers with National Foods (+5%), Pakistan Tobacco (+5%) and JDW Sugar (+5%) hitting their upper circuit breakers,” he said.



Trade volumes increased to 194 million shares compared with Friday’s tally of 191 million shares.

Shares of 378 companies were traded. At the end of the day, 232 stocks closed higher, 127 declined and 19 remained unchanged. The value of shares traded during the day was Rs5.85 billion.

Maple Leaf Cement was the volume leader with 26 million shares gaining Rs0.96 to finish at Rs27.38. It was followed by Azgard Nine with 23 million shares gaining Rs0.51 to close at Rs7.23 and Fauji Cement with 21 million shares gaining Rs0.65 to close at Rs16.02.

Foreign institutional investors were net buyers of Rs64 million worth of shares during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, December 31^st, 2013.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.