Market watch: Bulls drive the index to a record closing

Benchmark 100-share index rises 235.12 points

KARACHI: The Karachi Stock Exchange (KSE)-100 index celebrated positive news with a record high closing, extending its positive run to a seven-session streak. It last ended negative on July 27.

With earnings announcement slowly kicking into full gear, investors adopted a more aggressive approach. However, morning gains were partially negated by selling in the last hour.

However, at close on Wednesday, the KSE-100 benchmark index finished with an increment of 235.12 points or 0.65% to end at 36,156.83. An analyst at Topline Securities said the Karachi market closed at a historic high as jubilant investors celebrated robust June quarter earnings.



“Al-Ghazi Tractors Limited gained 4% and Allied Bank closed 1% up after their June earnings announcements were slightly better than expectations,” said the analyst.

“Renewed interest in Pak Elektron Limited was seen before June result as it remained the volume leader with 16 million shares, stock closed at 5% upper limit.

“Institutional support helped EFOODS closed at the upper limit with 3.7 million shares. “Despite better June earnings, stock has remained under selling pressure for the last few trading sessions.

“Pharma sector also gained with FEROZ, GLAXO, SEARLE and HINOON gaining 5%.”

Shares of 392 companies were traded on Wednesday. Of these, 225 companies closed higher, 147 fell and 20 remained unchanged.

Trading volumes increased to 336 million shares compared to 310 million on Tuesday.



Silk Bank (R) was the volume leader with 39 million shares gaining Rs0.10 to finish at Rs0.28. It was followed by Quice Food with 17.4 million shares, gaining Rs0.51 to close at Rs12.35 and K-Electric Limited with 16.7 million shares, gaining Rs0.11 to close at Rs8.07.

Foreign institutional investors were net buyers of Rs170 million worth of shares during the session, according to data compiled by the National Clearing Company of Pakistan.

Published in The Express Tribune, August 6^th, 2015.

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