Home > Market watch: Bulls return to action as index passes 34,000

Market watch: Bulls return to action as index passes 34,000

Benchmark KSE-100 index increases 
217.59 points.

Benchmark KSE-100 index increases
217.59 points.

KARACHI: Index was finally awakened from its slumber as investors took keen interest with results announcements kicking into full gear. Fertiliser, cement and oil sectors attracted attention as the benchmark-100 index finally breached the 34,000-point barrier amid high volume.

At close on Wednesday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.64% or 217.59 points to end at 34,061.42.

Elixir Securities, in its report, stated equities closed positive, bucking the recent trend of range-bound trading. “Stocks opened higher and sustained gains throughout the day as investors finally turned their attention towards result announcements,” said the report. “Despite decline in crude, exploration and production (E&Ps) traded and closed higher as value hunters, primarily institutions, stepped in to take advantage of the current weakness.

“Highlight of the day was Pakistan State Oil (PSO, +5%) that closed at its upper price limit after announcing earnings that beat consensus.

“Apart from E&Ps, cements and fertilisers also closed higher on better earnings announcements by Fauji Fertilizer (FFC, +2.5%) and DG Khan Cement (DGKC,+1.48%).”

Meanwhile, JS Global analyst Ahmed Saeed Khan said bulls returned to the fore, helping the index close higher. “An overall rally was witnessed in the market on the back of better than expected results in the fertiliser, cements and banking sectors,” said Khan. “Fauij Fertilizer Company (+2.5%) announced its result declaring earnings per share (EPS) of Rs10.14 against expectation of Rs9.70.”

“After better than expected results announced by the banking sector, rally was seen in the sector where the big five banks closed comfortably in the green. Top performers in the sector were Allied Bank Limited (+2.73%), Faysal Bank Limited (+2.69%) and National Bank of Pakistan (+1.35%).”

Trade volumes rose to 163 million shares compared with Tuesday’s tally of 126 million shares.

Shares of 392 companies were traded on Wednesday. At the end of the day, 209 stocks closed higher, 163 declined while 20 remained unchanged. The value of shares traded during the day was Rs9.3 billion.

Pace Limited was the volume leader with 13.7 million shares, losing Rs0.06 to finish at Rs7.61. It was followed by Jahangir Siddiqui and Company with 11.7 million shares, gaining Rs0.70 to close at Rs21.87 and Byco Petroleum with 11.2 million shares, gaining Rs0.38 to close at Rs26.31.

Foreign institutional investors were net sellers of Rs440 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, October 29th, 2015.

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