Market watch: Buoyed by positive news, bourse rebounds

Benchmark KSE-100 index jumps 436 points.

KARACHI: The index closed higher as the market rebounded, buoyed by positive news on macros with the United States’ coalition funds flow and encouraging remittances number helping confidence.

At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index jumped 1.66% or 436.86 points to end at 26,677.27.

“The recent drop proved enticing for investors looking for bargains with energy and financials leading the charge,” said Faisal Bilwani, an analyst from Elixir Securities.

“The ‘Engros’; (ENGRO PA +5%), (EFERT Pa +5%), (EFOODS PA +2.7%) all led from the front and only the latter not hitting the upper price limit on local and reported foreigners interest.



“MCB Bank (MCB PA +2.1%) announced its intention to invest in an unlisted Islamic bank Burj Bank. DG Khan Cement (DGKC PA +1.2%) announced better than expected half yearly earnings at EPS Rs6.09, closing in green.

“We see stocks to inch up further as value hunters will likely continue to take advantage, while earnings will keep blue-chips in limelight,” Bilwani concluded.

“At the bourse, we saw strong interest from individuals and corporate companies like Pakistan State Oil and Engro as the Economic Coordination Committee met to increase oil marketing company’s margins and to approve concessionary gas for Engro Fertilizer Company,” said Fahad M Ali of JS Global Capital.

“We expect the bull run in the market to continue with fertiliser, banking and OMC sector as our to-be-the-top picks,” said Ali.

Trade volumes rose to 284 million shares compared with Tuesday’s tally of 222 million.

The value of shares traded during the day was Rs10.5 billion.



BankIslami Pakistan remained the volume leader with 30.5 million shares, gaining Rs0.99 to finish at Rs10.04. It was followed by Faysal Bank with 25.4 million shares gaining Rs0.71 to close at Rs12.97 and Jahangir Siddiqui and Company with 21.46 million shares gaining Rs0.24 to close at Rs13.04.

Foreign institutional investors were net sellers of Rs236 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, February 13^th, 2014.

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