The index opened positive and managed to record new highs as lower inflation numbers strengthened sentiment.
At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index increased 0.71% or 216.78 points to end at 30,593.31.
“The benchmark index closed at 30,593, recording an all-time high led by cements that remained upbeat with Lucky Cement (LUCK PA +5%) hitting the upper price limit followed by Cherat Cement (CHCC PA +5%) and DG Khan Cement (DGKC PA +4.88%),” said Harris Ahmed Batla of Elixir Securities.
“Similarly, declining Japanese yen paved the way for auto manufacturers including Pak Suzuki Motors (PSMC PA +5%), Honda Car (HCAR PA +5%) and Indus Motors (INDU PA +5%) closing at their respective upper price circuits.
“Moreover, Oil and Gas Development Company (OGDC PA +.69%) traded volatile simultaneous to GDS book building that started yesterday as market players remained uncertain about the floor price.
“We foresee the market to test 31k as chartists expects breakout above new highs. Cements will continue to gain attention post lower CPI numbers while floor price for OGDC will guide sentiments for the oil sector,” he concluded.
Trade volumes rose to 232 million shares compared to 140 million on Friday.
Shares of 388 companies were traded on Wednesday. Of these, 113 companies declined, 257 closed higher while 18 remained unchanged. The value of shares traded during the day was Rs11.7 billion.
Maple Leaf Cement was the volume leader with 19.1 million shares, gaining Rs1.43 to close at Rs31.24. It was followed by Pak Elektron with 17 million shares, gaining Rs1.35 to close at Rs29.69 and Ghani Automobile with 11.4 million shares, gaining Rs0.86 to close at Rs6.88.
Foreign institutional investors were net buyers of Rs510 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 6th, 2014.
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