Index surges 189.34 points

A bullish trend continued on Karachi share market on Monday and the benchmark KSE-100 index surged by 189.34 points to close at 13,278.31 points. The market opened on strong positive note and the index breached 13,300 psychological level to hit 13,311.79 points intra-day high.
The index briefly visited negative zone due to profit taking in some selective stocks, however reviving investors' interest once again support the index to not only recover its intra-day losses but also close with healthy gains. Across the board buying was seen both from local and foreign corridors. The offshore participants remained net buyers of shares worth dollars 0.24 million.
Trading activities also improved significantly as the volumes at ready counter increased to 295.138 million shares as compared to 253.003 million shares traded on last trading session. Total market capitalisation increased by Rs 49 billion to Rs 3.441 trillion. Of the total 355 active scrips, 210 closed in positive and 86 in negative while the value of 59 stocks remained unchanged.
Fauji Cement was the volume leader with 32.784 million shares however lost Re 0.14 to close at Rs 4.89. DG Khan Cement inched up by Re 0.19 to close at Rs 29.93 with 11.201 million shares. Lafarge Pakistan closed at Rs 2.80, up Re 0.04 with 10.199 million shares.
Jahangir Siddiqui Co gained Re 1.00 to close at Rs 10.37 with 27.489 million shares. Arif Habib Corp inched up by Re 0.91 to close at Rs 31.88 with 22.006 million shares. In the banking sector, Bank Al Falah, NBP and NIB Bank increased by Re 1.00, Re 0.97 and Re 0.14 to close at Rs 15.53, Rs 53.82 and Rs 1.94 with 23.073 million shares, 19.077 million shares and 10.643 million shares respectively. Azgard Nine inched up by Re 0.83 to close at Rs 6.84 with 17.202 million shares. Fatima Fertilizer Co gained Re 0.12 to close at Rs 25.57 with 8.254 million shares.
Nestle Pakistan and Colgate Palmolive were the highest gainers increasing by Rs 190.09 and Rs 26.73 to close at Rs 3991.98 and Rs 843.23 respectively while Pak Services and EFU General Insurance were the worst losers declining by Rs 6.00 and Rs 3.63 to close at Rs 132.65 and Rs 72.37 respectively.
Hasnain Asghar Ali at Aziz Fidahusein Co said the index consolidated above 13,000 despite intra-day adjustments during early trade, threatening an extended decline, with technical charts suggesting otherwise. The frontline stocks did stay jittery initially, however due to their inherent capacity of trading at improved multiples once the committed infrastructural changes are incorporated in totality.
The early dips got a vigorous response from the local circuits thus along with various holding companies those set the dice, on improvement in valuations of strategic holdings, cement stocks on the news of increase in export proceeds to the northern neighbour kept the turnover engine busy generating higher volumes, that was followed by substantial rise in traded volume when the front liners carrying support of technical calls to join the recovery path.
"Despite vulnerable economic and financial issues, off-shore inflow and re-appointment of finance minister as Senator certainly infused confidence amongst the market men, on timely implementation of the infra-structural changes as committed by the dignitary he visited KSE, various stocks having potential of trading at improved multiples upon implementation of committed changes thereby continued to invite renewed buying on intra-day adjustments, thus keeping across the board stagnation that usually becomes an excuse for extended adjustment away for the day", he said.