Market watch: Index remains in the black

Benchmark KSE-100 index gains 27.73 points.

KARACHI: The market remained in the black with cement in the limelight due to the Annual Plan Coordination Committee’s (APCC) favourable recommendation of Rs1.3 trillion for the Public Sector Development Programme.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.10% or 27.73 points to end at 29,048.21.

According to Fareesa Baig of Elixir Securities, Pakistan equities opened gap up, picking on Monday’s momentum, but lost steam soon after to close marginally positive but above 29k on turnover that was higher by 23% of the May average.



“K-Electric Limited (KEL PA) continued to impress, gaining 4.65% to close at an all- time high of Rs8.32 per share while being over 39% of the total volumes traded at KSE100 index on Tuesday,” informed Baig.

“Stock is up 46.9% this year and still has near 40% upside to our targeted Rs11.6 per share by year close,” said Baig.

“DG Khan Cement (DGKC PA 2.72%) was also hard to ignore, with the stock regaining some momentum after being a laggard and losing 5.4% in the last six trading sessions.

“Pakistan State Oil (PSO PA +.3%) opened strong on morning news of Ministry of Water and Power arranging Rs51 billion to ensure fuel supply to RFO-fired thermal power stations. However, the stock closed with little change along with other energy names namely Oil and Gas Development Company (OGDC PA -.3%) and Pakistan Petroleum Limited (PPL PA -.01%),” informed Baig.



“We expect the market to find support at these levels and inch above on selective interest with locals keeping a track of foreign inflows and awaiting the budget announcement,” concluded Baig.

Trade volumes rose to 163 million shares compared with Monday’s tally of 110 million.

Shares of 368 companies were traded on Tuesday. At the end of the day, 153 stocks closed higher, 193 declined while 22 remained unchanged. The value of shares traded during the day was Rs7.8 billion.

K-Electric Limited was the volume leader with 48.1 million shares, gaining Rs0.35 to finish at Rs8.30. It was followed by Lafarge Pakistan with 8.1 million shares, gaining Rs0.18 to close at Rs14.40 and Pak Elektron Limited with 6.8 million shares, losing Rs0.50 to close at Rs25.50.

Foreign institutional investors were net sellers of Rs170 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, May 28^th, 2014.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.