Market watch: Stock market continues upward trend
Benchmark KSE-100 index gains 405.59 points.
A Pakistani stockbroker watches latest share prices on a digital board during a trading session at the Karachi Stock Exchange (KSE) in Karachi on April 1, 2014. PHOTO: AFP
KARACHI:
The stock market continued its upward trend, gaining further momentum due to better than expected inflation in the country.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 1.49% or 405.59 points to end at 27,565.50.
According to JS Global analyst Mujtaba Barakzai, the market saw an impressive rise and bullish sentiment was witnessed across the board with participation in index heavy weights.
“Pakistan State Oil (PSO), Lucky Cement (LUCK), MCB and Engro Foods (EFOODS) went up by 3.5%, 5.0%, 2.9% and 4.1% respectively,” said Barakzai, adding that PSO gained as it entered its spot period, while LUCK closed at its upper circuit with expected developments on possible acquisitions, setting up overseas plants and rumours of cement price hike.
“News on macros also remained positive, with 24% year-over-year high tax collection in 9MFY14 and Pakistan planning issue of $500 million Euro bonds,” concluded Barakzai.
Meanwhile, Faisal Bilwani of Elixir Securities said that Pakistan equities rose to the highest close as better than expected inflation fuelled the current run.
“Bears were nowhere to be seen with bulls maintaining a firm control,” said Bilwani, adding that inflows from foreign investors and S&P affirming stable outlook on sovereign rating acted as a strong catalyst with both institutions and individuals jumping on-board to grab value plays.
“Highlight of the day were index heavy oil and banking names, including Oil and Gas Development Company (OGDC PA +2.3%), as well as PSO and MCB,” added Bilwani.
“We see stocks to remain buoyant and excitement to continue with energy and financials getting the most attention. Foreigners’ activity will continue to act as a guide with resistance in the broader market,” concluded Bilwani.
Trade volumes rose to level of 220 million shares compared with Monday’s tally of 136 million.
Shares of 368 companies were traded on Tuesday. At the end of the day, 228 stocks closed higher, 118 declined while 22 remained unchanged. The value of shares traded during the day was Rs11.6 billion.
Lotte Chemical Pakistan Limited was the volume leader with 24.3 million shares, gaining Rs0.96 to finish at Rs8.03. It was followed by Bank of Punjab with 19.2 million shares, gaining Rs0.24 to close at Rs10.73 and Lafarge Pakistan with 9.9 million shares, gaining Rs0.15 to close at Rs11.29.
Foreign institutional investors were net buyers of Rs560 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, April 2nd, 2014.
The stock market continued its upward trend, gaining further momentum due to better than expected inflation in the country.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 1.49% or 405.59 points to end at 27,565.50.
According to JS Global analyst Mujtaba Barakzai, the market saw an impressive rise and bullish sentiment was witnessed across the board with participation in index heavy weights.
“Pakistan State Oil (PSO), Lucky Cement (LUCK), MCB and Engro Foods (EFOODS) went up by 3.5%, 5.0%, 2.9% and 4.1% respectively,” said Barakzai, adding that PSO gained as it entered its spot period, while LUCK closed at its upper circuit with expected developments on possible acquisitions, setting up overseas plants and rumours of cement price hike.
“News on macros also remained positive, with 24% year-over-year high tax collection in 9MFY14 and Pakistan planning issue of $500 million Euro bonds,” concluded Barakzai.
Meanwhile, Faisal Bilwani of Elixir Securities said that Pakistan equities rose to the highest close as better than expected inflation fuelled the current run.
“Bears were nowhere to be seen with bulls maintaining a firm control,” said Bilwani, adding that inflows from foreign investors and S&P affirming stable outlook on sovereign rating acted as a strong catalyst with both institutions and individuals jumping on-board to grab value plays.
“Highlight of the day were index heavy oil and banking names, including Oil and Gas Development Company (OGDC PA +2.3%), as well as PSO and MCB,” added Bilwani.
“We see stocks to remain buoyant and excitement to continue with energy and financials getting the most attention. Foreigners’ activity will continue to act as a guide with resistance in the broader market,” concluded Bilwani.
Trade volumes rose to level of 220 million shares compared with Monday’s tally of 136 million.
Shares of 368 companies were traded on Tuesday. At the end of the day, 228 stocks closed higher, 118 declined while 22 remained unchanged. The value of shares traded during the day was Rs11.6 billion.
Lotte Chemical Pakistan Limited was the volume leader with 24.3 million shares, gaining Rs0.96 to finish at Rs8.03. It was followed by Bank of Punjab with 19.2 million shares, gaining Rs0.24 to close at Rs10.73 and Lafarge Pakistan with 9.9 million shares, gaining Rs0.15 to close at Rs11.29.
Foreign institutional investors were net buyers of Rs560 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, April 2nd, 2014.