Market watch: Amid hope, bourse ends week on a high

Benchmark KSE-100 index gains 172.44 points.

KARACHI:

The index closed the week positive on earnings that led excitement and hopes of positives on macros. However, turnover on Friday was 8% lower against the week’s average as major investors remained selective ahead of the long weekend. The market will now open on Wednesday (November 5).

At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index increased 0.57% or 172.44 points to end at 30,376.53.

“United Bank (UBL PA +1.6%) gained on reported institutional buying, while other stocks in the sector also inched up on bets of earnings jump from bank’s debt portfolios,” said Faisal Bilwani of Elixir Securities.



“K-Electric (KEL PA +1.6%) led volumes and closed positive after announcing earnings that grew 80% year-on-year while one news outlet suggested that company might scrap its $270 million coal conversion project as regulator failed to approve tariff in time to get the financing.

“Pakistan State Oil (PSO PA +1.6%) moved further up as government approves change in margin formula, while Nishat Mills (NML PA -1.8%) ended in red on institutional selling. “We see the stocks to
trade positive and test
new highs post the long weekend as clarity on IMF installment and expected lower CPI inflation due on the first working day will help confidence.

“Book building for OGDC stake sale that starts November 5 will also bring oil stocks in the limelight and news flow and rumours over pricing are likely to guide the sector,” Bilwani concluded.



Trade volumes fell to 140 million shares compared to 151 million on Thursday. Shares of 371 companies were traded on Friday. Of these, 157 companies declined, 200 closed higher while 14 remained unchanged. The value of shares traded during the day was Rs9.16 billion.

Pak Elektron was the volume leader with 14.3 million shares, gaining Rs1.23 to close at Rs28.34. It was followed by Pak Elektron (R) with 9.6 million shares, gaining Rs0.99 to close at Rs7.95 and K-Electric Limited with 6.3 million shares, gaining Rs0.12 to close at Rs7.82.

Foreign institutional investors were net buyers of Rs196 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, November 1^st, 2014.

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