Market watch: Index moves past 34,000

Benchmark KSE-100 index rises 227.82 points.

KARACHI: Reinforcing its tag of being among the world’s top performing markets of 2014, the bourse reached another high, breaking past the 34,000-point barrier on Monday.

Fuelled by activity in the oil and gas sector, the Karachi Stock Exchange (KSE) benchmark 100-share index rose 0.67% or 227.82 points to close at 34,014.26.

Anticipation of a discount-rate cut in the upcoming monetary policy triggered heavy investments. Additionally, strong earnings’ outlook and a slight recovery in the global oil prices led the healthy day for equities.



Elixir Securities analyst Faisal Bilwani said equities positive as investors cheered positive developments on the political front. “Stocks opened gap up and rallied above 34,000 helped by gains in oil stocks that tracked global crude,” said Bilwani.

“Pakistan State Oil (PSO, +5%) closed at the upper price limit on government’s focus to address energy sector debt followed by serious fuel crisis in Punjab province.

“Engro Corp (ENGRO,+5%) also ended the day at upper price limit on excitement over earnings and future outlook and on rumours of progress on Engro Fertilizers (EFERT, +2%) divestment,” said Bilwani.

“Cements were up in line with broader market, however, banks failed to keep up as United Bank (UBL, -1.4%) closed red on institutional selling. Turnover in wider market was healthy with small cap retail plays dominating volumes table.”

Meanwhile, Arif Habib Corporation’s Ahsan Mehanti said rumours of a release in funds for an ailing energy sector and strong earnings outlook in fertiliser and cement sectors played a catalyst role in bullish activity.

Trade volumes fell to 305 million shares compared to 344 million on Friday.

Shares of 397 companies were traded on Monday. Of these, 171 companies declined, 211 closed higher and 15 remained unchanged. The value of shares traded during the day was Rs15.5 billion.



Jahangir Siddiqui and Company was the volume leader with 33.6 million shares, gaining Rs0.96 to close at Rs18.30. It was followed by Pakistan International Airlines with 16.9 million shares, gaining Rs0.39 to close at Rs9.62 and the Byco Petroleum with 15.3 million shares, gaining Rs0.23 to close at Rs10.34.

Foreign institutional investors were net buyers of Rs41 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 20^th,  2015.

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