KARACHI: Buoyed by several positives, the Karachi Stock Exchange (KSE)-100 index inched closer as investors took positions in select stocks on Monday.
Prominent factors included a high level of interest in K-Electric due to a sell-off rumour. Additionally, tractor schemes announced by provincial governments helped sustain interest in heavy vehicle manufacturers.
At close, the Karachi Stock Exchange (KSE) 100-share index recorded a rise of 0.17% or 59 points to end at 34,710.29. Investor interest in second- and third-tier scrips on export financing incentives and falling borrowing rates played a catalyst role in bullish sentiments.
An analyst at Topline Securities said the KSE-100 index closed above 34,700 after a gap of four months after touching highest ever level of 34,826 points on February 3, 2015.
“Total volume traded stood at 568 million shares, out of which 217 million shares were traded in K-Electric, on speculation of a potential sell-off.”
The analyst added that a potential strategic sale of the stock exchange further captivated investor interest in the market.
“Announcement of tractor schemes by Sindh and Punjab governments in their budgets helped Al Ghazi Tractors (AGTL) and Millat Tractors (MTL) gain 5% and 3.8%, respectively,” said analyst.
“Dawood Hercules Corporation Limited closed at the upper limit after announcing the deal price to sell their subsidy to Pakarab Fertilizer.”
Trade volumes increased to 568 million shares compared to 431 million on Friday. The value of shares traded during the day was Rs16.1 billion.
Shares of 392 companies were traded. Of these, 193 companies closed higher, 175 fell and 24 remained unchanged.
K-Electric Limited was the volume leader with 217 million shares, gaining Rs0.72 to close at Rs8.85. It was followed by Dewan Cement with 33.4 million shares, gaining Rs0.37 to close at Rs10.31 and PACE (Pak) Limited with 21.7 million shares, gaining Rs0.55 to close at Rs5.08.
Foreign institutional investors were net sellers of Rs37 million worth of shares during the session, according to data compiled by the National Clearing Company of Pakistan.
Published in The Express Tribune, June 16th, 2015.
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