Market watch: Political stability leaves bourse in the black

Benchmark KSE-100 index rises 207.19 points.

KARACHI: Political stability led to an active day at the bourse with the market closing at a high level. Additionally, the bookingbuilding process of Pakistan Petroleum Limited (PPL) kept interest elevated.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.71% or 207.19 points to end at 29,188.53.



Elixir Securities analyst Batla claimed that calmness on the political front rejuvenated investor confidence, helping benchmark index close near 29,200. “Book-building for government’s stake in PPL +2.23% kept the stock in the limelight with the floor price announced at Rs205 per share which was above expectations,” said Batla.

“Bids for over 24 million shares on the system at present, at an indicative strike price of Rs205 against an offer volume of 70.055million shares.”

“Rumours regarding acquisition of Lafarge Cement (LPCL) +4.9% on premium to market price augmented buying interest with over 21.7 million shares exchanging hands.

“Moreover, National Bank of Pakistan (NBP) +4.3% came close to hitting its upper price limit over reported foreigner buying along with anticipation of stellar earnings for the upcoming quarter over lower provisioning.”

“We expect market to remain upbeat with flows from foreigners setting the tone while earning and payout expectations from the upcoming result season will keep investors hooked.”

Meanwhile. JS Global analyst Syed Faran Rizvi said mixed sentiments were witnessed during the trading hour while in the last trading hour investor participated in Oil & Gas, Banks and Cement sector.

Trade volumes fell to 149 million shares compared with Wednesday’s tally of 203 million shares.

Shares of 326 companies were traded on Thursday. At the end of the day, 211 stocks closed higher, 98 declined while 17 remained unchanged. The value of shares traded during the day was Rs8.5 billion.



LPCL was the volume leader with 21.7 million shares, gaining 0.74 to finish at Rs15.81. It was followed by NBP with 14.3 million shares, gaining Rs2.60 to close at Rs62.84 and Pakistan Telecommunication Limited with 10.8 million shares, gaining Rs0.72 to close at Rs25.57.

Foreign institutional investors were net buyers of Rs216 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited 

Published in The Express Tribune, June 27^th, 2014.

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