Trade volumes fell to 110 million shares compared with Friday’s tally of 135 million. PHOTO: FILE
The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.92% or 264.48 points to end at 29,020.48.
According to Faisal Bilwani of Elixir Securities, Pakistan equities kicked off the week positive with benchmark testing 29,000 after trading below for over a month. However, turnover failed to impress and was 21% below the monthly average of May.
“Stocks cheered weekend news of a possible middle way on CGT with reports suggesting 12.5% rate for holdings of less than a year and 10% tax on profits for stocks held for more than a year and less than two,” said Bilwani.
“Moreover, Prime Minister Nawaz Sharif’s short visit to India to attend the oath-taking of the newly-elected government reignited hopes of better bilateral relations and possible positive spillover effect on the economy.
“Index heavy financials led the charge on Monday with MCB Bank (MCB PA +1.8%) on institutional buying while United Bank Limited (UBL PA +5%) hit upper lock. K-Electric Limited (KEL PA) once again led the volumes chart, churning near 35% of volumes on KSE100 as institutions and retail alike continue to bet on this turnaround story,” informed Bilwani.
“Monday’s gains and close above 29k may trigger a pre-budget rally with index testing new highs on gains in energy and financials helped and backed by foreign flows. We like Pakistan State Oil, Pakistan Oilfields Limited, Oil Gas Development Company, Nishat Mills Limited, HBL and Bank Al-falah Limited,” concluded Bilwani.
Trade volumes fell to 110 million shares compared with Friday’s tally of 135 million.
Shares of 346 companies were traded on the first trading session of the week. At the end of the day, 195 stocks closed higher, 126 declined while 25 remained unchanged. The value of shares traded during the day was Rs5.3 billion.
K-Electric Limited was the volume leader with 24.7 million shares, gaining Rs0.23 to finish at Rs7.95. It was followed by Pak Elektron Limited with 8.9 million shares, gaining Rs1.23 to close at Rs26.00 and Faysal Bank with 6.6 million shares, gaining Rs0.55 to close at Rs16.87.
Foreign institutional investors were net buyers of Rs128 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, May 27th, 2014.
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