Equities bounce back
The Karachi Stock Exchange (KSE) benchmark 100-share index Thursday recovered 160.31 points or 0.52 percent on the back of the news a consensus developed by all political parties over the terrorism issue. The KSE-100 index closed at 30,827.45 points, up 0.52 percent or 160.31 points as compared to 30,667.14 points Wednesday.
Copyright Business Recorder, 2014
During the intraday trading, the KSE-100 index touched highest level of 31,154.50 points and plunged to 30,667.14 points lowest level. Among top 10 volume leaders, six companies recorded a positive trend. Volumes slightly declined to 195 million shares, while the value rose to Rs 10.97 billion. Fahad Hussain Khan of Adams Securities said bulls kicked the local bourse to bullish zone amid rebound in international equity markets along with the consensus over terrorism issue by all political parties.
He said textile sector remained in the limelight after the statement came from Khurram Dastgir that lifting ban from capital punishment would not hurt GSP Plus status. He said major trading activities was witnessed in cement sector as traded above 42.18 million shares followed by commercial banks sector with 26.71 million shares. Electricity sector stood at 3rd place by trading above 22.78 million shares.
Samar Iqbal of Topline said recovery in global markets coupled with PTI announcement to end protest helped local equities. She said payment of the IMF tranche also helped boost investors'' confidence. Abdul Azeem of InvestCapital said although textile sector could face the pressure from EU after lifting ban on capital punishment, no bleak revision in GSP Plus status was expected during prevailing law and order situation.
He said in the presence of low cotton prices, declining interest rates, expected decline in energy tariff and subdued oil prices would provide a stimulus to the profitability of the textile sector. Meanwhile, Ahsan Mehanti of Arif Habib Corp said stocks showed sharp recovery after the IMF approval on the disbursement of $1.1bn loan to Pakistan under the Extended Fund Facility on satisfactory economic performance and PTI decision to end countrywide protests.
He said oil stocks led the rally followed by select scrips across the board after WTI crude oil jumped by over 7 percent and a sharp recovery in global equities expected to dampen foreign selling at KSE. Out of 374 scrips, 206 scrips advanced, 144 declined while the value of 24 scrips remained unchanged. K-Electric Ltd emerged the volume leader on 15.06 million shares losing Re. 0.04 to close at Rs 8.65 while Worldcall Telecom stood second on 10.27 million shares, unchanged at Rs 1.64. Maple Leaf Cement closed at Rs 41.48, up Re. 0.76 on 9.79 million shares.
B.O.Punjab lost Re. 0.17 to close at Rs 9.98 on 9.50 million shares. D.G.K.Cement advanced by Rs 4.22 to close at Rs 109.33 on 8.26 million shares. Lafarge Pak rose by Re. 0.19 to close at Rs 17.32 on 7.13 million shares. Sui South Gas closed at Rs 37.55, down Re. 0.38 on 6.75 million shares. Sui North Gas gained Re. 0.17 to close at Rs 28.52 on 5.05 million shares. Nishat Mills Ltd closed at Rs 119.76, up Rs 1.22 on 4.87 million shares. Pak Elektron moved up by Re. 0.16 to close at Rs 36.92 on 4.51 million shares. Colgate Palmolive and Service Ind Ltd were the highest gainers with Rs 85.52 and Rs 31.14 to close at Rs 1,796.11 and Rs 935.27, respectively. Nestle Pak and Fazal Textile were the worst losers with Rs 100 and Rs 41.55 to close at Rs 8,400 and Rs 811.25, respectively.