Benchmark
100-share index
rises 198 points
News flow helped select sectors as trading volumes went higher, helping the benchmark Karachi Stock Exchange (KSE)-100 index consolidate its position over 34,000.
At close, the index stood at 34,331.94, recording a rise of 0.58% or 198.10 points.
Elixir Securities analyst Faisal Bilwani said institutional buying in large cap banks pushed stocks higher with National Bank (NBP +4.9%) hitting the upper price limit intraday, while MCB Bank (MCB +1.6%) and United Bank (UBL +2.4%) also ended higher on reported foreign buying.
“Most retail-driven, small- and mid-cap speculative plays remained in the limelight and churned significant volumes while oils, namely Oil and Gas Development Company (OGDC -1.2%), remained a dampener and limited upside on index that tested 34,400 intraday,” he said.
Bilwani predicted volatile trading in the range of 300-500 points with institutional flows guiding market direction in the short term and in absence of any immediate trigger. He advised caution in small caps and recommend staying long and cherry picking value plays at current levels.
Meanwhile, an analyst at Topline Securities said Dewan Cement’s (DCL) decision to convert its outstanding loan of Rs500 million to 50 million ordinary shares helped the stock close at its upper limit. It added that the buying spree continued in Pak Elektron (PAEL), up 5% due to speculation over its loan conversion at a higher price.
Trade volumes increased to 391 million shares compared to 258 million on Tuesday. The value of shares traded during the day was Rs12 billion.
Shares of 389 companies were traded. Of these, 223 companies closed higher, 138 fell and 28 remained unchanged.
K-Electric Limited was the volume leader with 32.9 million shares, gaining Rs0.10 to close at Rs8.54. It was followed by Dewan Salman Fibre with 25.2 million shares, gaining Rs0.57 to close at Rs2.97 and Pace Pakistan Limited with 22.7 million shares, gaining Rs1.00 to close at Rs6.37.
Foreign institutional investors were net sellers of Rs385 million worth of shares during the session, according to data compiled by the National Clearing Company of Pakistan.
Published in The Express Tribune, June 25th, 2015.
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