Market watch: Stocks bounce back after renewed foreign interest

Benchmark KSE-100 index gains 304.35 points.

KARACHI:

The index recovered after a week’s long decline and volatility to bounce back and close above the 25,700 levels.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 1.19% or 304.35 points to end at 25,783.28.

“Pakistan stocks closed bullish after a record earnings announcement and interim payout by Pakistan State Oil,” said Ahsan Mehanti from Arif Habib Corporation.

“Renewed foreign interest, rising forex reserves, easing concerns for political uncertainty and expectations for favorable Consumer Price Index data for February 2014 played a catalyst role in the strong recovery of selected oversold stocks across the board at KSE,” Mehanti said.



“The morning news of Pakistan forex reserves increasing by $674 million to $3 billion during the week ending Feb 21, which is being attributed to receipts by multilateral and bilateral sources, aided as a trigger,” said Elixir Securities’ market analyst Muhammad Sibtain Mustafa.

“Pakistan State Oil (PSO PA +5%) further supported the momentum as it ended the day on its upper lock after the company announced robust earnings of Rs63.97 per share for half year along with Rs4 per share cash dividend and 10% stock dividend.

“Oil and Gas Development (OGDC PA +1.6%) and MCB Bank (MCB PA +2.5%) bounced back on rumours of foreign Institutional investors buying,” said Mustafa.



Trade volumes rose to 234 million shares compared with Thursday’s tally of 165 million.

Shares of 369 companies were traded on Friday. At the end of the day, 172 stocks closed higher, 185 declined while 12 remained unchanged. The value of shares traded during the day was Rs9.8 billion.

Jahangir Siddiqui and Company was the volume leader with 18.6 million shares, losing 0.91 to finish at Rs10.17. It was followed by TRG Pakistan Limited with 17.6 million shares, gaining Rs0.30 to close at Rs14.45 and The Bank of Punjab (R) with 15.7 shares, losing Rs0.06 to close at Rs0.24.

Foreign institutional investors were net buyers of Rs694 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, March 1^st, 2014.

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