Market watch: Index makes historic cross into 35,000

Benchmark 100-share index rises 342.95 points.

Our Correspondent July 02, 2015
Benchmark 100-share index rises 342.95 points.

KARACHI: Pakistan equities crossed the 35,000-point barrier for the first time, ending at a record high as lower-than-expected inflation reading and rumours of a deferral in gas price hike continued to fuel excitement.

At close, the benchmark Karachi Stock Exchange (KSE)-100 index stood at 35,186.56, recording a rise of 0.98% or 342.95 points.

Overall, the upbeat cement dispatch data for June, speculations ahead of year-end results, recovery in global stocks and $18.5-billion record foreign exchange reserves data amid release of IMF tranche played an important role in the index finishing at its highest level yet.

Read: Regional markets: KSE-100 outperforms most in 2014-15

Elixir Securities analyst Faisal Bilwani said fresh buying in the new fiscal year, both from local and foreign institutions, was well supported by retail and prop book activity as turnover crossed the $125-million mark.

“Cements led the show with Lucky Cement (LUCK PA +5%) hitting the upper lock while DG Khan (DGKC PA +3%) and Fauji Cement (FCCL PA +3%) also added to recent gains while small caps led volumes,” he said.

The analyst predicts the on-going momentum to push the index to test 35,500 in days ahead.

Shares of 367 companies were traded on Wednesday. Of these, 246 companies closed higher, 107 fell and 14 remained unchanged.

Read: KSE world's best performing frontier stock market: report

NIB Bank Limited was the volume leader with 29 million shares, gaining Rs0.05 to close at Rs2.25. It was followed by Byco Petroleum with 23.8 million shares, gaining Rs1.16 to close at Rs24.76 and Pace (Pakistan) Limited with 22.1 million shares, losing Rs0.12 to close at Rs7.60.

Foreign institutional investors were net buyers of Rs240.7 million worth of shares during the session, according to data compiled by the National Clearing Company of Pakistan.

Published in The Express Tribune, July 3rd,  2015.

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