A bullish trend was witnessed on the Karachi share market on Wednesday on the back of local investors and institutional support. The KSE-100 index surged by 138.66 points to close at the level of 12,877.88 points. After strong positive opening the index breached 12,900 psychological level to hit 12,912.96 points intra-day high level. However, profit taking in some selective stocks minimised the intra-day gains.
Trading volumes slightly reduced to 206.475 million shares as compared to 217.592 million shares traded on Tuesday. Total market capitalisation increased by Rs 22 billion to Rs 3.338 trillion. Of the total 359 active stocks, 153 closed in negative and 140 in positive while the value of 66 scrips remained unchanged.
Lotte Pakistan PTA was the volume leader with 25.728 million shares and gained Re 1.00 to close at Rs 8.90. Jahangir Siddiqui Co lost Re 0.43 to close at Rs 9.58 with 12.986 million shares. In the banking sector, NBP, BoP and Bank Al Falah declined by Re 0.72, Re 0.09 and Re 0.40 to close at Rs 51.39, Rs 7.65 and Rs 13.68 with 10.914 million shares, 7.702 million shares and 6.648 million shares respectively.
Fresh buying was seen in the cement sector stocks, as Fauji Cement and DG Khan Cement increased by Re 0.25 and Re 0.11 to close at Rs 4.45 and Rs 28.03 with 10.830 million shares and 7.883 million shares respectively. TRG Pakistan inched up by Re 0.22 to close at Rs 2.70 with 9.478 million shares. Azgard Nine lost Re 0.48 to close at Rs 6.33 with 6.593 million shares. Engro Polymer gained Re 0.71 to close at Rs 10.81 with 6.187 million shares.
Nestle Pakistan and Wyeth Pak were the highest gainers increasing by Rs 160.07 and Rs 16.63 to close at Rs 3500.46 and Rs 779.96 respectively while Bata (Pak) Limited and Service Industries were the worst losers declining by Rs 29.64 and Rs 5.01 to close at Rs 649.59 and Rs 193.89 respectively.
Hasnain Asghar Ali, a market expert said that the sentiments continued to stay upbeat at the local bourse, wherein frontline stocks continued to invite renewed buying interest mainly inspired by the funds flow from international corridors as reported in previous session. The oil and gas exploration stocks led the show, as the sector stocks are likely to continue benefiting from weakness in local currency and rising trend in international oil prices, not to stay unnoticed were, singled out stocks from cement sector, that stayed in lime light throughout the session, thus allowing the index a jump start, that soon reflected gains in triple digit.
He said the low priced stocks on high punting, and some on hefty selling continued to generate high turnover wherein LOTPTA led the show, and stayed the volume leader, while substantial rise in benchmark along with funds flow from both corporate and offshore channels invited day traders for a short term punt, thus keeping stagnation away for the day, fertiliser sector stocks duly joined the show mainly in post midday session, while the banking sector, with exception stayed under shadow of technical adjustment, so did the benchmark that closed with adjusted gains, mainly on day end off-loading.
Economic and financial horizon that continues to stay gloomy, likely increase in inflationary pressures, government borrowing and dollar reserves mainly due to debt retirement to international lenders as being endorsed by both local and foreign dignitaries continues to signal caution, however expectations of likely increase in trading multiples upon increase in turnover mainly due to timely implementation of committed infrastructural changes, the local equity market might continue the run-up for some time, sector and stock swapping is likely to stay an active strategy under the current scenario, since chances to technical sell-off cannot be ruled out in case of non-materialisation of the triggering factor, before the result season comes to an end.