Market watch: Institutional buying keeps stocks’ upward momentum

Benchmark KSE-100 index gains 320.54 points.

KARACHI: Continuing with its recent momentum, the index closed the 27,000 level as massive institutional buying excited investors to jump in the rally.

The Karachi Stock Exchange’s (KSE) benchmark 100- index rose 1.21% or 320.54 points to end at 26,842.53.

“A strengthening rupee energised market momentum,” said Muhammad Raza Rawjani from Elixir Securities.

“Most volumes were seen in cements as a decline in coal prices and the expected increase in sector profitability pushed stock prices higher. However, later rumours of a possible price cut in cement prices expected this month, wiped morning gains, pushing Maple Leaf (MLCF PA -1.5%), DG Khan Cement (DGKC PA -0.6%) and other cement companies in the red zone.



“Financials, after being laggards in this rally, saw a turn in fortune, with broad based interest in top tier banking stocks.

“National Bank (NBP PA +5%) closed at the upper price limit after having corrected over 12% on disappointing results and expectations of promising earnings in 2014.

“Interest in other big banks Habib Bank (HBL PA +4.4%), United Bank (UBL PA +1.9%) and Bank Alfalah (+1.4%) pushed them to new highs with Habib Bank trading intra-day at upper price limit.

“Oils, too, continued on their northward ride after commissioning of gas processing facility in TAL block earlier this week is expected to push earnings higher.

“With the market nearing 27,000, some resistance is expected at this level. However, we continue to remain upbeat over our index target of 33,000 and recommend investors to stay long especially in energy and banks,” Rawjani concluded.

JS Global Analyst Fahad M Ali advised the same, saying that the market is expected to remain bullish for the next couple of trading sessions with the banking and oil and gas sector attracting most of the interest.

Trade volumes remained close to Wednesday’s tally of 263 million.

Shares of 388 companies were traded on Thursday. At the end of the day, 261 stocks closed higher, 103 declined while 24 remained unchanged. The value of shares traded during the day was Rs11.9 billion.



Maple Leaf Cement was the volume leader with 25.3 million shares, losing 0.44 to finish at Rs29.55. It was followed by Lafarge Pakistan with 22.9 million shares, losing Rs0.21 to close at Rs11.41 and the Bank of Punjab with 11.5 shares, gaining Rs0.02 to close at Rs10.81.

Foreign institutional investors were net sellers of Rs222 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, March 7^th, 2014.

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