Business

Market watch: Index soars with monetary policy around the corner

Benchmark KSE-100 index rises 214.46 points.

Our Correspondent January 14, 2015

Jahangir Siddiqui and Company was the volume leader with 30.6 million shares, gaining Rs1.00 to close at Rs16.40. PHOTO: AFP

KARACHI: The index’s run to new highs continued as investors placed bets on improving macros ahead of a possible rate cut in the upcoming monetary policy.

At close, the Karachi Stock Exchange (KSE) benchmark 100-share index rose 0.64% or 214.46 points to end at 33,585.75.

Elixir Securities analyst Harris Ahmed Batla said Engro Corporation (ENGRO PA +4.89%), which was the loser in Tuesday’s session, was a winner on Wednesday, closing at its upper price limit over rumours of a Secondary Public Offering of Engro Fertilizer (EFERT PA +2.98%) to be announced shortly.

“Clarity over no further cuts in cement prices rejuvenated buying interest in cement while financials traded lacklustre ahead of the monetary policy,” said Batla.

“Oil stocks continued to close in the red as global crude tests lows while taking advantage of the same. Second-tier industrial players namely Tariq Glass and Berger Paints (BERG PA +3.40) kept investors interest alive.”

Batla said market may remain range bound ahead of the monetary policy while any recovery in global crude could revive interest index heavy oil plays.

Trade volumes rose to 383 million shares compared to 279 million on Tuesday.

Shares of 404 companies were traded on Wednesday. Of these, 147 companies declined, 238 closed higher and 19 remained unchanged. The value of shares traded during the day was Rs17.7 billion.

Jahangir Siddiqui and Company was the volume leader with 30.6 million shares, gaining Rs1.00 to close at Rs16.40. It was followed by Pakistan International Airlines with 29 million shares, gaining Rs0.57 to close at Rs8.98 and Pak Elektron with 21.1 million shares, losing Rs0.47 to close at Rs49.05.

Foreign institutional investors were net buyers of Rs274 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 15^th, 2015.

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