Market watch: Index breaks past 30,000-point barrier

Benchmark KSE-100 index increases 400.94 points.

Our Correspondent July 17, 2014


Karachi Stock Exchange’s (KSE) index broke past the coveted 30,000-point barrier for the first time on the back of heavy financial investment.

At close, the KSE benchmark 100-share index rose 1.35% or 400.94 points to end at a record 30,177.11.

Elixir Securities analyst Faisal Bilwani said Pakistan equities soared by 400 points and surpassed 30,000 to close at an all-time high. “This was a result of the index being pushed mainly by index heavy financials and energy stocks,” said Bilwani.

“Morning news of Moody’s changing outlook to stable from negative for five banks; Allied Bank (ABL) +5%, Habib Bank (HBL) +1.9%, MCB Bank (MCB) 1.8%, National Bank (NBP) +1.1% and United Bank (UBL) +4.8%, helped confidence with broader market seeing a breakout post 30k as energy and cements pitched in, ” added Bilwani.

“Fauji Cements (FCCL) 5% led volumes and hit upper price limit with Maple Leaf Cement (MLCF) PA +2.4% and Lafarge Pakistan (LPCL) +1.3% not so far behind on primarily retail activity.”

Meanwhile, JS Global analyst Fahad M. Ali said that bulls dominated the market. “Investors continued to remain bullish due to hefty foreign inflows and  expectation of unchanged Monetary Policy Statement announcement.”

Trade volumes slightly rose to 206 million shares compared with Wednesday’s tally of 112 million.

Shares of 339 companies were traded on Thursday. At the end of the day, 211 stocks closed higher, 96 declined, while 32 remained unchanged. The value of shares traded during the day was Rs11.2 billion.

FCCL was the volume leader with 20.2 million shares, gaining Rs1.01 to finish at Rs21.21. It was followed by K-Electric Limited with 18.2 million shares, gaining Rs0.27 to close at Rs7.77 and MLCF with 13.5 million shares, gaining Rs0.74 to close at Rs31.49.

Foreign institutional investors were net buyers of Rs643 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, July 18th, 2014.

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