Market watch: Index rises from its slumber

Benchmark KSE-100 index gains 476.39 points.

KARACHI:

After a sluggish few days, the KSE-100 index recovered strongly yesterday, led by the bulls and the cement sector.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 1.68% or 476.39 points to end at 28,912.98.

JS Global analyst Fahad M Ali said active participation was seen as the cement sector initiated the positivity in the market. “This was a result of a notice issued by DG Khan Cement (DGKC) that expressed the company’s interest to acquire 100% stakes of Lafarge S.A in Lafarge Pakistan (LPCL),” said Ali. “Sharp movement towards north was witnessed in ENGRO Corporation (ENGRO), where it hit its upper circuit of 5% during the day on rumours of SSGC signing a gas agreement with ENGRO.”



Jawwad Aboobaker of Elixir Securities said banking names mainly MCB Bank (MCB) +0.84%, United Bank (UBL) +2.06% and National Bank (NBP) +3.1% were able to register firm gains.

“Textiles also attracted interest with Nishat Chunian (NCL) +2.9% and Nishat Mills (NML) +3.3% as investors expected the worst to be over with relief package expected in the upcoming budget to support exporters,” said Aboobaker.

Trade volumes increased to 251 million shares compared with Tuesday’s tally of 175 million shares.

Shares of 356 companies were traded yesterday. At the end of the day, 233 stocks closed higher, 103 declined while 20 remained unchanged. The value of shares traded during the day was Rs10.3 billion.



LPCL was the volume leader with 58.1 million shares, gaining Rs0.59 to finish at Rs14.12. It was followed by Jahangir Siddiqui and Company with 13.1 million shares, gaining Rs1.00 to close at 12.00 and Hub Power Company with 9.1 million shares, gaining Rs0.52 to close at Rs57.44.

Foreign institutional investors were net buyers of Rs80 million, according to data maintained by the National Clearing Company of Pakistan Limited.

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

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