KARACHI: Consumer price index clocked in below market expectations, helping Pakistan equities inch closer to the 35,000-point barrier on the first day of the new fiscal year.
A bullish sentiment was witnessed across the board as blue-chip stocks attracted interest with interest shown in cement, fertiliser and oil sectors.
At close on Wednesday, the Karachi Stock Exchange (KSE) benchmark-100 index ended at 34,843.6, recording an increase of 1.29% or 444.74 points.
JG Global analyst Umair Hasan said the market continued its bullish momentum as CPI for June clocked in at 3.16%.
“Consequently, strong investor interest was witnessed in cements with DGKC, FCCL and MLCF all ending 1.5%, 3.2% and 2.2% higher, respectively,” said Hasan. “Leveraged scrips saw positivity through the day’s trade.
“With expectations in the market of government imposing gas tariff hikes, SNGP and SSGC remained strong with particular investor interest, ending 4.9% and 4.8% higher, respectively.”
Hasan added that a possible delay in implementation of GIDC translated into a positive impact amongst fertiliser scripts as ENGRO, FFBL and EFERT, with all ending higher.
“BYCO continued its rally and the market continued its recent trend with sideboards remaining in the limelight as JPGL, PTC, PIBTL and TELE all ending higher.”
An analyst at Topline Securities said the Karachi bourse rallied after lower than expected CPI.
“Index heavy weight MCB, ENGRO, HUBC and OGDC contributed 210 points to the index gain of 1.3%.”
“HUBC rallied by 2.6% after Supreme Court dismissed a petition filed by FBR, and maintained its decision in favour of HUBC.”
Trade volumes increased to 376 million shares compared to 347 million on Tuesday. The value of shares traded during the day was Rs12.8 billion.
Shares of 361 companies were traded on Wednesday. Of these, 245 companies closed higher, 99 fell and 17 remained unchanged.
PACE (Pakistan) Limited was the volume leader with 26.8 million shares, gaining Rs0.43 to close at Rs7.42. It was followed by NIB Bank Limited with 21.6 million shares, gaining Rs0.18 to close at Rs2.20 and Dewan Cement with 20.4 million shares, gaining Rs0.53 to close at Rs15.05.
Foreign institutional investors were net buyers of Rs182 million worth of shares during the session, according to data compiled by the National Clearing Company of Pakistan.
Published in The Express Tribune, July 2nd, 2015.
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