After a sluggish performance on Wednesday, the index recovered on the basis of institutional buying, overcoming political woes.
At close, the Karachi Stock Exchange benchmark 100-share index rose 0.52% or 154.07 points to end at 29,537.04.
Elixir Securities analyst Faisal Bilwani said Pakistan equities staged a mild recovery, clawing back some of the losses early this week as index names bounced back primarily on reported local institutional buying.
“Energy and cements led with Pakistan State Oil (PSO) +2% gaining despite yesterday’s statement by Finance minister that Ministry of Finance would not clear the circular debt that mounted to Rs262 billion, as he said Ministry of Water and Power should have improved its recoveries from consumers,” said Bilwani.
“Lucky Cement (LUCK) +1.3% closed higher on local buying while reported retail interest kept small cap cements in limelight with Lafarge Pakistan (LPCL) +1.9% leading volumes charts. United Bank Limited (UBL) -2.1% had a third consecutive negative close as investors continue to book profits with stock tumbling by over 7% in three days from its recent record high near Rs200 per share.”
JS Global analyst Fahad M Ali said the market opened the day on a bearish note as concerns grew over the political scenario with seemingly no let down from the opposition parties.
“But during the mid of the trading session, market observed a bullish activity and ended in the green zone as politicians huddled together to conjure up a solution.”
Trade volumes increased to 121 million shares compared with Wednesday’s tally of 97.4 million.
Shares of 320 companies were traded on Thursday. At the end of the day, 205 stocks closed higher, 92 declined while 23 remained unchanged. The value of shares traded during the day was Rs1.5 billion.
Lafarge Pakistan Cement was the volume leader with 12.3 million shares, gaining Rs0.29 to finish at Rs15.81. It was followed by TRG Pakistan with 9.5 million shares, gaining Rs0.25 to close at Rs11.95 and Pakistan Electronics Limited with 9.2 million shares, gaining Rs1.30 to close at Rs29.53.
Foreign institutional investors were net sellers of Rs38.7 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, August 8th, 2014.
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