Trade volumes rose to level of 254 million shares compared with Wednesday’s tally of 123 million. PHOTO: FILE
The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 1.28% or 343.57 points to end at 27,165.49.
According to JS Global analyst Ovais Ahsan, the banking sector broke a perennial spell of underperformance to help the bulls break the 27,000 index level.
“MCB (MCB PA +3.8%) and United Bank Limited (UBL PA +5.0%) led the sector as record participation in the Pakistan Investment Bond auction saw banks move aggressively into the 3-year bonds at a cut off yield of 12.55%,” said Ahsan, adding that this in turn will have a favourable impact on banks’ earnings to counter waning spreads under a subdued interest rate scenario.
“Mid-tier and smaller banking stocks also put up an impressive performance, the banks can continue to rally, though more efficient banks, which are seeing growth from non-interest income, like United Bank and Faysal Bank will continue to shine brighter than their peers,” concluded Ahsan.
Meanwhile, Naveen Yaseen of Elixir Securities said that Engro Foods witnessed activity over anticipation of a price hike of its dairy products. “Fatima Fertilizer (FATIMA PA -1.5%) closed in the red due to its below-expected payout and earnings announcement.
“Lucky Cement (LUCK PA +0.6%) stayed buoyant after gaining 1.9% during the day.”
Trade volumes rose to level of 254 million shares compared with Wednesday’s tally of 123 million.
Shares of 379 companies were traded on Thursday. At the end of the day, 200 stocks closed higher, 152 declined while 27 remained unchanged. The value of shares traded during the day was Rs11 billion.
Faysal Bank was the volume leader with 33.6 million shares, gaining Rs0.71 to finish at Rs14.35. It was followed by Summit Bank with 26.7 million shares, gaining Rs0.87 to close at Rs3.27 and Adamjee Insurance with 12.5 million shares, gaining Rs2.11 to close at Rs46.97.
Foreign institutional investors were net buyers of Rs70 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, March 28th, 2014.
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