Market watch: Index continues its ride in the black

Benchmark 100-share index rises 45.93 points.

Our Correspondent July 07, 2015
Benchmark 100-share index rises 45.93 points.

KARACHI: Strong buying continued at the Karachi Stock Exchange (KSE) as the benchmark-100 index continued to reach record highs, surpassing 35,500 for the first time on the opening day of the week.

Interest in select stocks and trigger of sector-specific developments helped the index inch higher, albeit lesser than the previous week, after the early-morning loss.

At close on Monday, the index stood at 35,502.28 points, increasing by 45.93 points or 0.13%

The announcement to increase tariffs for Karachi’s power consumers helped K-Electric Limited (KEL) go up by 1.67% while weak global crude prices affected Oil and Gas Development Corporation, Pakistan Petroleum Limited (PPL) and Pakistan Oilfields Limited (POL) which closed in the range of 1.85%-2.88%, said an analyst at Topline Securities.

Meanwhile,  JS Global analyst Umair Hasan said the market remained range bound through most part of the day’s trade, ending up marginally.

“Cement stocks continue to rally with FCCL, KOHC, LUCK, LPCL and PIOC ending 1.9%, 5%, 3.5%, 3.3% and 1.2%, higher respectively.

“Byco continued its positive rally, ending once again at its upper-circuit. Increase in KEL’s tariff by 20%-80%, translated into positive investor sentiment in the market as the scrip remained the volume leader, ending higher by 1.67%.

“Sideboard scrips also remained in the limelight as TRG, PIAA, and TPL ended with strong volumes and higher by 3.2%, 6.8% and 5.9%, respectively,” said Hasan.

“As global oil prices witnessed a further decline, oil and gas sector continued to remain under pressure as PSO, POL, PPL and OGDC ended down.”

Banking scrips continue to remain under pressure on expectations of falling NIMs due to all-time low discount rate, said Hasan.

Shares of 367 companies were traded on Monday. Of these, 190 companies closed higher, 158 fell and 19 remained unchanged.

Trading volumes increased to 362 million compared to 355 million on Friday.

K-Electric Limited was the volume leader with 36.5 million shares gaining 0.14 at Rs8.48. It was followed by TRG Pakistan Limited with 22.6 million shares, gaining Rs1.07 to close at Rs34.33 and Pakistan International Bulk Terminal with 18.1 million shares, gaining Rs0.53 to close at Rs39.11.

Foreign institutional investors were net buyers of Rs443 million worth of shares during the session, according to data compiled by the National Clearing Company of Pakistan.

Published in The Express Tribune, July 7th, 2015.

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