The Karachi share market closed higher gaining 59 points at 34,710.29 with trading volume climbing to record level of 568 million shares. Of the total turnover, 217 million shares belonged to K-Electric on what analysts said investors' speculations for a potential sell-off of the power utility. The scrip, Umair Hasan of JS Global said, had been in the limelight after its recent Sukuk issue.
Backed by strong earnings outlook, the KSE-100 index was seen declining to 34,635.06 before peaking to the intraday high of 34,869.45 points. The traded value rose to Rs 16 billion from Rs 15.5 billion of Friday last week. Of the total 392 scrips, 193 posted gains, 175 lost their worth and that of 24 remained unchanged. The market capitalisation ended almost flat at Rs 7.463 trillion. Foreign portfolio investment entered negative zone with a net buying of $ 378,030.
"Stocks closed higher, amid record trades ahead of new slabs applicable on capital gains for the fiscal year 2015-16, on strong earnings outlook," said Ahsan Mehanti of Arif Habib Corp. The investor interest in second- and third-tier scrips on export financing incentives, record PSDP commitments and falling borrowing rates played a catalytic role in the bullish sentiment, he said.
"The KSE-100 index closed above 34,700 after a gap of four months after touching highest ever level of 32,826 points on February 3," recalled Mohammad Rizwan at Topline Securities. The perceived potential strategic sale of KSE-100 index further captivated the investor interest in the market, he added.
With KEL having topped the list by rising to Rs 8.85, other well-performing issues were Dewan Cement 33 million, Pace Pakistan 22 million, Byco Petroleum 20 million, Pak Elektron 17 million, PTCL 16 million, Ghani Automobile 14 million, Fauji Cement 12 million, Fauji Fertilizer Bin Qasim 12 million and TPL Trakker 11 million shares. The futures trade showed positive trend as it rose to 60 million contracts compared to 36 million of the previous session.
Cement companies like DGKC, FCCL and MLCF gained 0.5, 0.9 and 2.8 percent on the back of reports of the government having released Rs 426 billion in FY15 so far under Public Sector Development Programme. Auto industry stayed positive after Punjab government's announcement of Rs 5 billion subsidy to farmers to help purchase 25,000 new tractors. From the index heavyweight oil and gas sector, SSGC and SNGPL hit their upper circuits at five percent apiece "as the date for imposition of GIDC comes closer."
Under pressure were the fertilisers and chemicals issues for a hike in Gas Infrastructure Development Cess would have them adversely affected. While the FFBL ebbed to its lower circuit, FATIMA, EFERT and FFC ended 1.9, 1.7 and 2.5 percent lower. Banking stocks showed a mixed trend where certain undervalued stocks posted recoveries. "Moving forward, we expect the market to remain positive," said Umair.
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