Market watch: Index begins week on a positive note

Benchmark 100-share index gains 338.21 points.

KARACHI: The index closed positive for the fifth consecutive session as investors continued to place confidence in the market.

At close, the Karachi Stock Exchange (KSE)-100 Index closed at 31,752.17 on Monday, registering an increase of 1.08% or 338.21 points.

“Recent revival in confidence and strong momentum continued with strong institutional interest in the wider market,” said Faisal Bilwani of Elixir Securities.

“Positives on political front as PTI returned to the parliament after seven months of protests and fresh liquidity finding its way post March slump ensured healthy turnover of over $125 million (Ytd average of around 83 million).



“Cements remained in the limelight over earnings excitement while Pakistan Telecommunication Company Limited hit upper price limit as rumours of ICH related gains resurfaced.

“Most financials were down owing to profit-taking while Habib Bank book building will keep the sector in the limelight with UBL, MCB, BAFL seeing unusual moves as govt tries to offload as much as $1 billion worth of shares.,” he said.

“We see a volatile market likely seeing a short term technical correction with index names tracking flows. We continue to advise accumulation and consider any correction as an opportunity with APL, ENGRO, FATIMA, PTC, DGKC,LUCK, FABL, UBL and HUBC our top picks,” concluded Bilwani.

Trade volumes fell to 241 million shares compared to 285 million on Friday.

Shares of 366 companies were traded on the first trading session of the week. Of these, 91 companies declined, 255 closed higher and 20 remained unchanged. The value of shares traded during the day was Rs13.7 billion.



Maple Leaf Cement was the volume leader with 18.4 million shares, gaining Rs1.99 to close at Rs57.59. It was followed by Pak Elektron with 17.6 million shares, gaining Rs2.53 to close at Rs53.31 and Fauji Cement with 17 million shares, losing Rs0.18 to close at Rs31.74.

Foreign institutional investors were net sellers of Rs371 million worth of shares during the session, according to data maintained by the National Clearing Company of Pakistan.

Published in The Express Tribune, April 7^th,  2015.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.