Market watch: MSCI announcements boost index, volumes
Benchmark KSE-100 index gains 314.83 points.
The value of shares traded during the day was Rs8.3 billion. PHOTO: INP
KARACHI:
With MSCI announcing results of its semi-annual index review, the index kick-started the day on an optimistic note and gained further momentum.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 1.10% or 314.83 points to end at 28,843.02.
“With market participants cheering the addition of several new companies in the MSCI Frontier Markets and small cap index, the day ended positive,” said Fareesa Baig of Elixir Securities.
“Among the companies making their place in the main index, Pakistan State Oil PSO (PA+3.04%), Lucky Cement (LUCK PA+3.5%), Pakistan Tobacco (PAKT PA +3.1%) and K-Electric (KEL PA +8.4%) basked in glory, with the latter churning astounding volumes of 80 million shares on the system along with another 20 million off-market.
“Other notable additions included National Foods (NATF PA +5%), Packages Limited (PKGS +5%), Habib Metropolitan (HMB PA +5%), Abbott Laboratories (ABOT PA +5%) and IGI Insurance (IIGIL PA +5%) while investor disappointment from Hub Power (HUBC PA -2.7%) was obvious as it was moved from main index to small cap index.
“National Bank (NBP PA +1.1%) gained on the back of reported institutional interest, along with Bank Alfalah (BAFL PA +0.6%) ahead of the monetary policy announcement this week, while Nishat Mills (NML PA +0.8%) and Nishat Chunian (NCL PA +2.2%) attracted interest over morning news of govt pledging support to the sector in the upcoming budget,” she said.
“We expect the benchmark to test and breach 29k on renewed interest and fresh liquidity channelling through with foreign flows helping and locals, particularly institutional investors jumping on the bandwagon. We recommend PSO, POL, NBP, ENGRO, NCPL, KEL and NML,” Baig concluded.
Trade volumes rose to 213 million shares compared with Wednesday’s tally of 108 million shares.
Shares of 368 companies were traded on Thursday. At the end of the day, 231 stocks closed higher, 119 declined while 18 remained unchanged. The value of shares traded during the day was Rs8.3 billion.
K-Electric Limited was the volume leader with 80 million shares, gaining Rs0.56 to finish at Rs7.23. It was followed by the Bank of Punjab with 7.7 million shares, losing Rs0.04 to close at Rs9.98 and Fauji Cement with 6.4 million shares, gaining Rs0.04 to close at Rs17.51.
Foreign institutional investors were net buyers of Rs26 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, May 16th, 2014.
With MSCI announcing results of its semi-annual index review, the index kick-started the day on an optimistic note and gained further momentum.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 1.10% or 314.83 points to end at 28,843.02.
“With market participants cheering the addition of several new companies in the MSCI Frontier Markets and small cap index, the day ended positive,” said Fareesa Baig of Elixir Securities.
“Among the companies making their place in the main index, Pakistan State Oil PSO (PA+3.04%), Lucky Cement (LUCK PA+3.5%), Pakistan Tobacco (PAKT PA +3.1%) and K-Electric (KEL PA +8.4%) basked in glory, with the latter churning astounding volumes of 80 million shares on the system along with another 20 million off-market.
“Other notable additions included National Foods (NATF PA +5%), Packages Limited (PKGS +5%), Habib Metropolitan (HMB PA +5%), Abbott Laboratories (ABOT PA +5%) and IGI Insurance (IIGIL PA +5%) while investor disappointment from Hub Power (HUBC PA -2.7%) was obvious as it was moved from main index to small cap index.
“National Bank (NBP PA +1.1%) gained on the back of reported institutional interest, along with Bank Alfalah (BAFL PA +0.6%) ahead of the monetary policy announcement this week, while Nishat Mills (NML PA +0.8%) and Nishat Chunian (NCL PA +2.2%) attracted interest over morning news of govt pledging support to the sector in the upcoming budget,” she said.
“We expect the benchmark to test and breach 29k on renewed interest and fresh liquidity channelling through with foreign flows helping and locals, particularly institutional investors jumping on the bandwagon. We recommend PSO, POL, NBP, ENGRO, NCPL, KEL and NML,” Baig concluded.
Trade volumes rose to 213 million shares compared with Wednesday’s tally of 108 million shares.
Shares of 368 companies were traded on Thursday. At the end of the day, 231 stocks closed higher, 119 declined while 18 remained unchanged. The value of shares traded during the day was Rs8.3 billion.
K-Electric Limited was the volume leader with 80 million shares, gaining Rs0.56 to finish at Rs7.23. It was followed by the Bank of Punjab with 7.7 million shares, losing Rs0.04 to close at Rs9.98 and Fauji Cement with 6.4 million shares, gaining Rs0.04 to close at Rs17.51.
Foreign institutional investors were net buyers of Rs26 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, May 16th, 2014.