Market watch: Institutional interest helps index end in the black

Benchmark 100-share index rises 97.15 points.

KARACHI: Institutional interest in blue-chip stocks and cement helped the market gain and near the 36,000-point barrier twice intra-day. However, a plunge in the middle meant the Karachi Stock Exchange (KSE)-100 index went up only 0.27%, but continued to end in the positive during the week.

Volumes increased amid selected interest, but investors continued to tread with caution with results announcement yet to kick into full gear.

Additionally, with the regulator warning against investing based on rumours, most low-tier stocks lost value.



At close on Tuesday, the KSE-100 benchmark index increased 97.15 points or 0.27% to end at 35,921.71.

Topline Securities analyst Samar Iqbal said expectations of better June earnings helped the cement sector rally.

“Maple Leaf Cement Factory Limited (MLCF), Lucky Cement (LUCK) and Dera Ghazi Khan Cement all rose.

“Continued institutional interest in ENGRO and Engro Fertilizers Company Limited (EFERT) helped both stocks rallying.

Arif Habib Corporation’s Ahsan Mehanti was of the view that sentiments remained bullish after CPI Inflation data for July stood at a 12-year low at 1.8% year-on-year (YoY).

“Leveraged stocks in cement, fertiliser and textile sector outperformed the index amid hopes for a fall in SBP key policy rates next month.

“Recovery in global oil prices supported oil stocks near the session close. Speculations ahead of major corporate earnings results due this week played a catalyst role in higher close at KSE,” added Mehanti.

Shares of 377 companies were traded on Tuesday. Of these, 149 companies closed higher, 202 fell and 26 remained unchanged.

Trading volumes increased to 310 million shares compared to 200 million on Monday.



TRG Pakistan Limited was the volume leader with 27.8 million shares losing Rs1.48 to finish at Rs37.32. It was followed by Pace Pakistan Limited with 21.3 million shares, losing Rs0.66 to close at Rs6.24 and Silk Bank with 20.9 million shares, losing Rs0.04 to close at Rs0.18.

Foreign institutional investors were net buyers of Rs504 million worth of shares during the session, according to data compiled by the National Clearing Company of Pakistan.

Published in The Express Tribune, August 5^th, 2015.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.