Stocks extend rally
Sentim-ent at the Karachi share market remained positive for the second day in a row Wednesday as the index heavyweights helped the benchmark KSE-100 index reach close to 30,000 points level. Overall, the KSE-100 index increased by 270 points to close at 29,997 points compared to 29,726 points Tuesday.
Copyright Business Recorder, 2014
During the intraday trading, the KSE-100 index also crossed 30,000 points level to reach 30,001 points highest level, however the market could not sustain the level and closed below 30,000 points. The market also touched 29,726 points lowest level. Following a positive trend, volume at the ready counter surged by 25 percent as overall 125 million shares were traded against 100 million in previous session.
Analysts said the KSE-100 index gained momentum Wednesday as the index heavyweights OGDC +1.4 percent, Lucky Cement +3.4 percent and UBL +1.5 percent led the way. Lafarge Cement +0.6 percent was among the volume leaders as it announced an extraordinary general meeting for the 21st of October. "Local investors were encouraged by the fact that foreigners turned net buyers yesterday after a short spurt of selling ended," they added.
Healthy participation in the Saif Power book building and Engro Powergen Qadirpur IPO also pointed to strong appetite for equities with the general public, institutions and high net worth individuals, they said. High levels of cash held by local business groups, low fixed income instrument yields coupled with foreign institutional interest are being seen as a reason for the resilience of the market despite political uncertainties, analysts said. Market capitalisation witnessed an upward trend and rose by Rs 66 billion to reach Rs 6.980 trillion up from Rs 6.914 trillion.
Trading took place in 392 companies, of which 216 closed in green zone, 152 in the red while share price of 24 companies remained unchanged. Samar Iqbal, Assistant Vice President Equity Sales Topline Securities, said continuous foreign fund managers'' support helped the index gain further and led by PSO and NBP, the KSE-100 index gained 0.91 percent. OGDC and MCB also remained supportive to the index gain and the overall value also increased to $71mn or Rs 7.1 billion.
Among top 10 volume leaders, four companies closed negative. Dewan Motors emerged volume leader with 10.4 million shares, gaining Rs 1.00 to close at Rs 7.66. Lafarge Pak stood second, inching up by Re 0.10 to close at Rs 16.61 on 8.7 million shares. D.G.K Cement ranked third with 7 million shares but lost Re 0.90 to Rs 78.80.
With a trading volume of 6.8 million shares, National Bank gained Re 0.32 to Rs 60.82. Pak Elektron moved up by Re 0.27 to close at Rs 27.46 on 6.4 million shares. Askari Bank closed at Rs 21.52, down Re 0.03 on 4.5 million shares. Some 3.4 million shares of Engro Fertilizer were traded and the scrip closed at Rs 54.43, up Re 0.82. Telecard Limited decreased by Re 0.02 to Rs 4.03 on 3.3 million shares. Pervez Ahmed lost Re 0.05 to Rs 3.17 on 2.9 million shares. With 2.7 million shares volume, Fauji Cement closed at Rs 19.56, up Re 0.07. Unilever Foods and Nestle Pak were the top gainers with Rs 439.00 and Rs 200.00 to close at Rs 9,238.00 and Rs 7,600.00, respectively. Colgate Palmolive and Sapphire were the top losers with Rs 43.50 and Rs 15.00 to close at Rs 1,506.50 and Rs 285.00, respectively.