Bulls hold sway
Bulls held sway on the Karachi share market on the back of rally in telecom, banks and cement sectors. The benchmark KSE-100 index gained 242.58 points to close at 29,783.30 points against 29,540.72 points Tuesday. "Bulls remained in charge at the bourse with the KSE-100 index remaining in the green zone throughout the day," analysts said.
Copyright Business Recorder, 2014
Banks and cement sectors performed with UBL being in the limelight with the commencement of the book building process for the Secondary Public Offering (SPO), which has been oversubscribed, they added. Commenting on the market situation, Ahsan Mehanti of Arif Habib Corp said stocks closed bullish led by telecom scrips as investors count on reduced FED levy, new auctions of over Rs 60 billion for 2G/4G and expected fund release from Etisalat for PTC amounting to $799 million of property.
He said trade remained high as foreign interest remained in cement, banking and oil stocks impacted by MSCI weight changes. Higher local cement dispatches, impact of MARI new crude oil discoveries and the market based gas pricing approval played a catalyst role in bullish close, he added. During the intraday trading, the index touched 29,842.04 points highest and 29,450.72 points lowest levels. The trading was also on higher side as the volume at the ready counter surged to 289.8 million shares from 232.4 million shares. The market capitalisation rose by Rs 69 billion to Rs 7.070 trillion.
Trading took place in 375 scrips, of which positive growth was witnessed in 210, some 135 closed with minus signs and that of 30 stayed unchanged. Analyst Samar Iqbal of Topline Securities said huge foreign interest in UBL in book building created an across-the-board rally in the market. National Bank rallied with 15 million shares volume after news of foreign interest in the stock. PTC rallied and closed at upper limit with rising volumes. Cement stocks also came in limelight after the World Bank approved loan for dam constructions, she added.
Among top 10 scrips, some nine closed positive. TRG Pakistan emerged volume leader with 28 million shares. It gained Re 1 to close at Rs 16.38. Lotte Chemical stood second, moving up by Re 0.26 to close at Rs 7.96 on 19 million shares. P.T.C.L closed at Rs 30.96, up by Rs 1.47 on 17.5 million shares. K-Electric Ltd declined by Re 0.05 to close at Rs 8.81 on 17.2 million shares. Lafarge Pakistan gained Re 0.16 to close at Rs 14.76 on 15.4 million shares. National Bank witnessed an increase of Rs 2.11 to close at Rs 61.32 on 15 million shares. Fauji Cement moved up by Re 0.23 to close at Rs 20.95 on 13 million shares. Maple Leaf Cement closed at Rs 31.63, moving up by Re 0.42 on 10 million shares. Sui North Gas and Sui South Gas increased by Re 0.10 and Re 0.69 to close at Rs 24.14 and Rs 34.59, respectively.
Unilever Food and Nestle Pak were the top gainers with Rs 140.00 and Rs 121.50 to close at Rs 8,600.00 and Rs 8,248.50, respectively. Bata Pak and National Foods were the top losers with Rs 55.03 and Rs 7.99 to close at Rs 3,387.29 and Rs 790.00, respectively. Going forward, analysts expect the market will remain positive in next few sessions with banking sector being the top pick.