Market watch: Index breaks past 33,000-point barrier

Benchmark KSE-100 index rises 281.52 points.

KARACHI: Led by oil and cement stocks, the index broke past the 33,000-point barrier for the first time with excitement over earnings announcements lifting momentum.

At close, the Karachi Stock Exchange (KSE) benchmark 100-share index rose 0.86% or 281.52 points to end at 33,117.47.

Elixir Securities analyst Faisal Bilwani said the index closed at a record high with KSE-100 cruising through the 33,000 resistance.

“Index was sustained by excitement over profits and pay-outs in the coming earnings season,” said Bilwani. “Moreover, bets of 100bps cut in discount rate to 8.5% in the coming policy announcement on Friday, January 16, kept mood upbeat.”



“The market kicked off positive with oil stocks rallying on some recovery in global crude with Pakistan Oilfields (POL +3.2%), Pakistan Petroleum (PPL +2.4%) and Oil and Gas Development Corporation (OGDC) closing up.

“Cements also gained on local interest while Engro Corporation (ENGRO +3%) ended higher as investors build positions ahead of 2014 earnings announcement.”

Meanwhile, JS Global analyst Muhammad Mobeen added that the cement sector remained under pressure and witnessed profit-taking. “This was due to rumours of Kohat Cement Company Limited’s limestone mine being closed down due to non-payment of royalties to local stakeholders,” said Mobeen.

“The food sector remained upbeat with Nestle Pakistan (+5%), Engro Foods (+4.5%) and Murree Brewery (+2.3%).”

Trade volumes rose to 273 million shares compared to 264 million on Wednesday.

Shares of 377 companies were traded on Thursday. Of these, 154 companies declined, 200 closed higher and 23 remained unchanged. The value of shares traded during the day was Rs15 billion.



NIB Bank Limited was the volume leader with 17.3 million shares, gaining Rs0.29 to close at Rs2.60. It was followed by K-Electric Limited with 15.8 million shares, losing Rs0.15 to close at Rs9.93 and Pakistan Telecommunication Limited with 14.2 million shares, gaining Rs1.11 to close at Rs26.70.

Foreign institutional investors were net sellers of Rs291 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, January 9^th,  2015.

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