The index rebounded after the joint parliament session concluded on a positive note to support the government and not derail the current democratic setup.
The index has been subject to political turmoil with Imran Khan-led PTI and Tahirul Qadri’s PAT asking for the prime minister’s resignation and staging massive protests in Islamabad.
However, the parliament expressing its confidence in PM Nawaz Sharif gave the index some impetus that shot over 29,000.
At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 2.69% or 766.55 points to end at 29,260.29.
Elixir Securities analyst Sibtain Mustafa said investors welcomed the developments in hope of an end to the ongoing crisis, and more importantly thin chances of intervention with most stocks ending the day at recent highs.
“Turnover also was encouraging with local institutions covering back positions while foreigners were also reported buyers in select index names.
“Lucky Cement’s (LUCK PA +5%) earnings that were in line brought the sector in the limelight while small caps led volumes on retail activity.
“We expect the market to be driven by news of the political situation; however, fundamentals will gain attention as crisis seems to be reaching to a conclusion. Barring no serious law and order situation and with little or no direct threat to democratic setup, we see the benchmark to test record highs in coming days with financials and energy leading the upside,” concluded Mustafa.
Meanwhile, JS Global analyst Ovais Ahsan said the relative resilience of the market is due to high levels of cash with local fund managers and foreign investor’s looking battle hardened enough to stay long despite the political imbroglio.
Trade volumes rose to 182 million shares compared to Monday’s tally of 122 million.
Shares of 367 companies were traded on Tuesday. Of these, 56 companies declined, 301 closed higher while 10 remained unchanged. The value of shares traded during the day stood at Rs9.6 billion.
Maple Leaf Cement was the volume leader with 11.9 million shares, gaining Rs1.33 to close at Rs27.96. It was followed by K-Electric Limited with 10.6 million shares, losing Rs0.02 to close at Rs8.49 and Jahangir Siddiqui and Company with 9.3 million shares, gaining Rs1 to close at Rs9.84.
Foreign institutional investors were net buyers of Rs309 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, September 3rd, 2014.
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The entire business community has rejected the chaos of Imran+Qadri losers and will focus only & only on rebuilding Pakistan.