KARACHI: The bulls reigned at the stock market with equities closing the day at an all-time high after gaining a remarkable +2% amid highest volumes in over six weeks.
At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 1.92% or 556.26 points to end at 29,543.58.
“The day started on a positive note following Wednesday’s foreign buying while reports of foreigners’ interest in blue chips and uptick in volumes enticed locals to join the party,” said Jawwad Aboobakar of Elixir Securities. “Retail investors continued to take advantage of the spike in turnover and were busy in day trades, primarily in small caps.
“Cements witnessed a breakout with DG Khan (DGKC PA +5%) hitting its upper price limit while Lucky Cement (LUCK PA 3.3%) also gained ahead of the budget with reports of government’s intention to increase infrastructural spending.
“Financials remained upbeat; MCB Bank (MCB PA +3.2%) closed at a record high while United Bank (UBL PA +3.1%) also gained tracking broader market.
“Meanwhile, energy stocks namely Oil and Gas Development Company (OGDC PA +2.4%) and Pakistan State Oil (PSO PA +4.64%) ticked up on flows and on hopes of government taking steps to manage energy sector receivables.
“Bets on 70 cent gas price for Engro Corporation (ENGRO PA’s +5%) fertiliser subsidiary helped break the laggard spell and hit the upper price limit.
“K-Electric (KEL PA -1%) led volumes and succumbed to profit-taking in later half of trading session after hitting fresh high of Rs9.25/share.
“Expect flows to continue to help momentum with KSE100 testing 30k in three sessions before the budget that is due Tuesday evening. We continue to recommend staying long in PSO, OGDC, NML, PTC, MCB, NBP, FATIMA and DGKC,” said Aboobakar.
Trade volumes rose to 351 million shares compared with Wednesday’s tally of 220 million shares.
Shares of 384 companies were traded on Thursday. At the end of the day, 252 stocks closed higher, 110 declined while 22 remained unchanged. The value of shares traded during the day was Rs15.7 billion.
K-Electric Limited continued to be the volume leader with 72 million shares, losing Rs0.09 to finish at Rs8.76. It was followed by Lafarge Pakistan with 22 million shares, losing Rs0.04 to close at Rs14.44 and TRG Pakistan with 19 million shares, gaining Rs0.37 to close at Rs14.79.
Foreign institutional investors were net buyers of Rs1.6 billion, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, May 30th, 2014.
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