Market watch: Inflation figures overshadow politics, index ends in the black

Benchmark KSE-100 index increases 101.74 points.


Our Correspondent December 01, 2014

KARACHI: Politics was overshadowed by low inflation figures for November as the index broke its run in the red on Monday.

At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index increased 0.33% or 101.74 points to end at 31,299.72.

Elixir Securities analyst Faisal Bilwani said Pakistan equities closed positive as excitement over macros trumped concerns on politics. “The day kicked off positive despite the call by PTI to continue protests,” said Bilwani.



“Oils continued their downward ride and kept upside in check. However, November consumer price index (CPI) inflation at 3.96% year-on-year kept mood upbeat.

“Textiles attracted attention with Nishat Mills (NML) +5% hitting upper price limit while Engro Corp (ENGRO, +5%) also witnessed buying interest on earnings excitement.”

Meanwhile, JS Global analyst Ovais Ahsan said the bulls were spurred by a benign CPI inflation number with Hub Power Company Limited (HUBC ,+4.77%)  and Kot Addu Power Company (KAPCO, +4.96%)  leading gains as investors hunted high dividend yield plays.

“Maple Leaf Cement (+2.67%) rallied as the cement sector gained on expectations of strong demand emanating from development spending anticipated in the coming months and a lower interest rate scenario.”



Trade volumes rose to 323 million shares compared to 240 million on Friday.

Shares of 356 companies were traded on Monday. Of these, 108 companies declined, 222 closed higher while 26 remained unchanged. The value of shares traded during the day was Rs17.7 billion.

Maple Leaf Cement was the volume leader with 28.4 million shares, gaining Rs0.98 to close at Rs37.63. It was followed by Jahangir Siddiqui and Company with 21.1 million shares, gaining Rs0.63 to close at Rs15.35 and K Electric Limited with 16.5 million shares, gaining Rs0.40 to close at Rs8.03.

Foreign institutional investors were net sellers of Rs167 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, December 2nd, 2014.

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