Buying, investment prospects push stocks 354 points up
Wednesday, May 22, 2013
Staff Report
KARACHI: Karachi stock market made another new high with record turnover of Rs 16.5 billion in ready market mainly led by aggressive foreign buying on Tuesday.
Analysts said market was also propelled by the fact that foreigner have already bought shares worth $155 million on net basis in the month of May. Moreover expectation the arrival of Chinese prime minister will provide the much-needed boost to the investment environment in Pakistan also helped boost investors confidence.
The Karachi Stock Exchange (KSE) 100-share index gained 353.86 points or 1.70 percent to close at 21,168.00 points as compared to 20,814.14 points of the previous session. The KSE 30-share index was up by 321.00 points to close at 16,482.63 points as compared with 16,161.63 points.
The market turnover went up by 29.11 percent and traded 443.63 million shares as against 343.59 million shares of the previous session. The overall market capitalisation gained 1.61 percent and traded Rs 5.153 trillion as against Rs 5.071 trillion. Gainers beat losers by 200 to 163 while 30 were unchanged.
The KMI 30-share index gained 772.81 points to close at 35,196.05 points from its opening at 35,632.57 points. The KSE all-share index closed by gaining 237.68 points to close at 14,948.74 points as compared to 14,711.06 points of the previous session.
Volume in rupee terms remained 43 months high. Foreigners have already bought shares worth $155 million on net basis in the month of May. Fauji Cement and PTC remained investors’ favourite as investors traded more than 100 million shares of these two stocks. Once again Oil and Gas Development Company (OGDC) and Pakistan State Oil (PSO) foreigners favourite closed at its upper limit, said Samar Iqbal Equity Dealer at Topline Sec.
Pakistan stocks closed all time high with investor interest in stocks across the board on strong valuations, said Ahsan Mehanti Director Arif Habib Corporation.
Trade remained higher amid bullish sentiments throughout the trading session on renewed foreign interest in oil and banking stocks, speculations on early resolution of circular debt issues in Pakistan energy sector, significant developments on resolution for war on terror and Indo-Pak, Pak-US relations after formation of new government played a catalyst role in bullish sentiments at KSE despite concerns for fall in rupee dollar parity and foreign exchange reserves on International Monetary Fund repayments due.
KSE-100 index celebrated key milestone level of 21,000 with great help of foreign buying in E&P sector. Once again OGDC, PSO, PPL and POL were in the limelight especially PSO and OGDC closed at upper circuit.
Investors are gaining confidence in the market, which is being reflected in volumes, which stood at 444 million shares today. Major contributors in volumes were FCCL and MLCF. Key factor of recent rally was favourable political situation. Banking sector companies like MCB, NBP and UBL were under pressure as profit taking was witnessed, however they managed to close in positive zone. Expectation remains still bullish, targeting oil, banking and cement sector, said Veer Bhan Bajaj at JS Research.
Growing risk appetite post general election in anticipation of reformist policy stance of the newly elected government to spur growth has left the equity bulls loose especially since the beginning of the month.
Amidst re-rating of multiples, the benchmark KSE-100 index has amassed a staggering 2,185 points (11.5%) since the beginning of the month. In today’s session, gains were led by index heavy oil and gas sector underpinned by foreign interest whilst advancement in Fauji twins also played its due contribution.
Stocks from IPP space continue their unwavering run as relative attractiveness of PKGP trigger substitution to push the stock to upper price limit yet again, said Salman Vidhani at Habib Metropolitan Finance Corporation.
Fauji Cement was the volume leader in the share market with 63.91 million shares as it closed at Rs 11.76 after opening at Rs 11.06 gaining 70 paisas. PTCL traded 35.83 million shares as it closed at Rs 20.67 from its opening at Rs 19.77 gaining 90 paisas. Lafarge Pakistan traded 24.12 million shares and closed at Rs 7.98 as compared to its opening at Rs 7.97 gaining 0.1 paisa. Maple Leaf Cement traded 18.18 million shares as it closed at Rs 21.48 as against its opening at Rs 21.10 gaining 38 paisas.
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