Index stages recovery
After two consecutive bearish sessions, Karachi Stock Exchange (KSE) staged recovery Thursday and the index climbed by 120.25 points on the back of earnings announcements by companies. The index closed at 23,114.97 against 22,994.72 Wednesday. The local shares market opened in green zone and maintained the same trend till close. The index touched 23,156 highest and 22,897 lowest level during the intra-day trading.
Copyright Business Recorder, 2013
The market capitalisation also witnessed positive trend and stood at Rs 5 .629 trillion against Rs 5.596 trillion. The trading side remained under pressure and the volume at the ready counter closed at 182.311 million shares from 232.021 million shares.
Commenting on the market performance, analysts at Arif Habib Corp said Pakistan stocks closed higher in the earnings announcement session at KSE led by oil, banking and cement stocks on strong valuations and renewed hopes for privatisation of SOEs based on commitment with IMF and revised bid for IMF $7.3bn loan. "Declaration for Pak economic and social support during meeting of government officials with UK Foreign Secretary, recovery in global commodities after Federal Reserves chairman''s congress testimony, rising exports, POL production data and early resolutions of circular debt issues played a catalyst role in bullish activity at KSE," they said.
Analysts at JS Global commented that the market closed on a bullish note after initial negativity with the oil and gas sector leading the advance. OGDC +0.6 percent, POL +1.4 percent and PSO +1.9 percent contributed most the index. They said that the banking sector also saw good interest with Habib Bank +2.9 percent, BAHL +2.0 percent and BAFL +1.9 percent being the prominent gainers. Adamjee Insurance +3.8 percent continued its steep journey upwards ahead of half year results as investors bet on strong equity portfolio gains.
Engro Corp ?1.7 percent continued to stall on doubts over its fertiliser unit getting gas diverted from Guddu power plant. Fauji Fertiliser Bin Qasim bucked the negative trend in the fertiliser sector as dividend hunters accumulated the sole DAP producer on improved margin scenario going forward and a prospective dividend yield of 13.5 percent, they added. Some 215 scrips witnessed positive trend and 104 negative out of total 343 active stocks. The prices of 24 shares remained unchanged.
Two top gainers for the day were Colgate Palmolive which moved up by Rs 29 to Rs 1880 and Wyeth Pak which rose by Rs 23 to Rs 1800. The top losers were Packages Ltd which fell by Rs 9.87 to Rs 235.13 and Atlas Battery which shed Rs 7.84 to Rs 372.61. On the Top 10 volume leaders, Maple Leaf Cement led the tally with 19m shares. It gained Rs 1.29 to Rs 27.21; B.O. Punjab gained 85 paisa to Rs 14.12 on 15m shares and Faysal Bank saw an increase of 60 paisa to close at Rs 11.76 on 11m shares.
Fauji Cement bagged 27 paisa to close at Rs 14.14 on 11m shares while National Bank lost 88 paisa to Rs 54.67 on 10m shares. PIAC (A) gained 42 paisa to Rs 8.88 on 9m shares. Engro Corporation shed Rs 2.79 to Rs 164.99 on 7m shares; Jahangir Siddiqui Company netted three paisa to close at Rs 13.16 on 5m shares; Byco Petroleum lost 44 paisa to close at Rs 10.72 with 5m shares; and Lafarge Pak gained22 paisa to close at Rs 9.49 on 4m shares.