Market watch: Stock market awakens from slumber

Benchmark KSE-100 index increases 200.41 points.

Our Correspondent August 22, 2014

KARACHI: Ending its low streak, the index emerged from its decline, gaining mid day as investors hoped political stability would prevail. 

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.70%  or 200.41  points to end at 28,865.25.

Elixir Securities analyst Sibtain Mustafa said the start of talks between the government and protesting opposition parties enabled the index to touch intraday high of 29,240.

“Albeit on low volumes, oil and banking sector drove index to make a new recent high,” said Mustafa. “However, morning gains soon surrendered and the index ended +0.7% after Imran Khan’s PTI announced that negotiations are being stopped temporarily amid rumours of government preparing to use force to dismantle protesters which was later refuted.”

“Volumes were primarily in small caps namely Fauji Cement (FCCL) -1.2%, Bank of Punjab (BOP) -0.4% and Maple Leaf Cement +3% while index names Pakistan Petroleum (PPL)+0.8%, MCB Bank (MCB) +1.75% and Lucky Cement (LUCK)+2.5% gained on institutional buying.”

Meanwhile, JS Global analyst Fahad M Ali said the market opened on a bullish note. “The news of resumption of talks between the government and political parties was hailed by market participants which kept the index in the black zone,” said Ali.

“The textile sector remained in the limelight as the US dollar touched a six-month high against the rupee; crossing Rs101 in both open and interbank market.”

Trade volumes rose to 151 million shares compared with Wednesday’s tally of 107 million.

Shares of 356 companies were traded on Thursday. Share prices of 112 companies declined, 224 closed higher while 20 remained unchanged. The value of shares traded during the day was Rs1.8 billion.

FCCL was the volume leader with 12.7 million shares, losing Rs0.23 to close at Rs18.94. It was followed by the Pakistan Elektron Limited with 11.8 million shares, gaining Rs0.62 to close at Rs29.13 and BOP with 10.1 million shares, losing Rs0.03 to close at Rs8.04.

Foreign institutional investors were net buyers of Rs188 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, August 22nd, 2014.

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