KSE creates history as index reaches 20,245 pts
Tuesday, May 14, 2013
Staff Report
KARACHI: The Karachi stock market opened the week on Monday with a huge rise of 329 points as investors and business community welcomed the emerging of Pakistan Muslim League-Nawaz (PML-N) as the leading political party in the general election 2013.
The Karachi Stock Exchange (KSE) 100-share index gained 328.55 points or 1.65 percent to close at 20,244.82 points as compared to 19,916.27 points of the previous session. The KSE 30-share index was up by 301.70 points to close at 15,739.29 points as compared with 15,437.59 points.
“Market players were happy to see one political party reaching close to majority,” said Topline Sec dealer Samar Iqbal. “As a result of this across-the-board improvement in share prices was seen.”
Investors feel that stable government will force economic leaders to take bold steps to put economy back on track, she said and added that Pakistan State Oil (PSO) closed at its upper limit as investors expect some resolution on the circular debt front.
Nishat Mills and MCB Bank also performed well due to buying by institutions, she added. The market turnover went down by 28.45 percent and traded 280.27 million shares as against 218.19 million shares of the previous session. The overall market capitalisation gained 1.32 percent and traded Rs 4.954 trillion as against Rs 4.889 trillion. Gainers beat losers 257 to 105, while 17 stocks were unchanged.
“Stocks closed bullish in the post-election rally at KSE with investor interest in stocks across-the-board after PML-N’s clean sweep in Punjab and hopes for improved Pakistan and India relations,” said Arif Habib Corporation Director Ahsan Mehanti. “Bullish rally was led by oil and banks stocks amid higher trades.”
Renewed foreign interest, hopes for early resolution of circular debt crisis in the energy sector, and gas supply issues to fertilizer and textile sectors on new political commitments played a catalyst role in record close at KSE despite concerns over security unrest in the country amid political protests.
The KMI 30-share index gained 462.01 points to close at 33,690.11 points from its opening at 34,228.10 points. The KSE all-share index closed with a rise of 189.70 points to close at 14,346.86 points as compared to 14,157.16 points of the previous session.
“The post-election euphoria pushed the benchmark well over the 20,240 points level with exceptionally good volumes,” said Habib Metropolitan Finance Corporation analyst Bilal Asif. “PML-N is leading the polls with 125 seats in National Assembly and has nearly achieved the required majority.”
Explorations and production companies added valuable points to the index along with cement stocks, which enjoyed the bullish sentiment.
He predicted the market to likely remain bullish in the upcoming couple of days whereas profit-taking may be witnessed by institutions at higher levels.
Fauji Cement was the volume leader in the share market with 31.81 million shares as it closed at Rs 10.58 after opening at Rs 10.18, gaining 48 paisas. Bank of Punjab traded 14.84 million shares as it closed at Rs 10.31 from its opening at Rs 9.31, increasing Re 1. Jahangir Siddiqui and Co traded 13.76 million shares and closed at Rs 11.93 as compared to its opening at Rs 11.28, rising 75 paisas. DGK Cement traded 11.79 million shares as it closed at Rs 74.96 as against its opening at Rs 71.85, appreciating Rs 3.11.
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