A bullish trend was witnessed on the Karachi share market on Friday on the back of aggressive buying by both local and foreign investors and the benchmark KSE-100 index surged by 87.23 points to close at 15,444.82 points. The market opened on strong positive note and the index hit 15,534.67 points intra-day high level.
The index briefly visited negative zone at 15,333.14 points intra-day low due to profit taking in some selective stocks, however recovered intra-day losses and closed in positive with healthy gains on the back of follow up support.
Trading activities also improved as the volumes at ready counter increased to 113.94 million shares as compared to 86.628 million shares traded on Thursday. Total market capitalisation increased by Rs 21 billion to Rs 3.898 trillion. Of the total 339 active stocks, 175 closed in positive and 146 in negative while the value of 18 stocks remained unchanged.
Bank Al Habib was the volume leader with 13.626 million shares however lost Re 0.28 to close at Rs 28.31. In the other banking sector stocks, Bank Al Falah and UBL declined by Re 0.37 and Rs 1.22 to close at Rs 15.56 and Rs 73.77 with 3.925 million shares and 2.951 million shares respectively.
Investors interest was seen in the cement sector, as DG Khan Cement, Lafarge Pakistan, Dewan Cement and Fauji Cement increased by Rs 1.14, Re 0.22, Re 0.33 and Re 0.10 to close at Rs 50.30, Rs 5.85, Rs 4.90 and Rs 6.37 with 12.578 million shares, 11.001 million shares, 4.900 million shares and 4.089 million shares respectively. JS Growth Fund lost Re 0.04 to close at Rs 7.56 with 5.227 million shares. PTCL inched up by Re 0.02 to close at Rs 19.39 with 3.657 million shares. Fatima Fertiliser Co gained Re 0.53 to close at Rs 24.16 with 2.846 million shares.
Unilever Pak and Unilever Food were the top gainers increasing by Rs 300 and Rs 50 to close at Rs 9,700 and Rs 3,500 respectively, while Rafhan Maize and Wyeth Pakistan were the top losers declining by Rs 219.85 and Rs 21 to close at Rs 4177.15 and Rs 850 respectively.
Hasnain Asghar Ali at Escorts Capital said that after staying in a lull for almost four sessions mainly due to roll-over pressure the accumulators on monetary policy and corporate earnings sensation came in with improved limits, in almost all the frontline stocks, wherein the cement and banking stocks led the gains and volume, duly followed by E&P and fertiliser stocks, thus keeping gains on the index quite prominent.
He said the banking sector stocks other than the top two stayed under pressure, while the sectors benefiting and are likely to feel the relief on the much anticipated decline in the monetary policy, thereby keeping the investors poised towards local equity markets in search of stocks likely to continue the gaining spree both on earnings and payouts, along with those likely to get the desired stimulus with a more aggressive stance by the policy decision makers, along with those pegged against USD, along with exporting concerns, since both gain from declining local currency, thereby keeping wider investment opportunities promising better returns both in form of yields and capital gains, selective accumulation is therefore recommended, with major obstacles already settled while other likely to be addressed, the running multiples, corporate profitability and high yields are enough credentials to invite local and off-shore participants for investments.
"The concerns on law order, political volatility and economic and financial matters are likely to keep cautious stance alive, however the triggers insight are likely invite improved turnover, thus may provide sector and stock swapping opportunities for maximisation of returns", he added.
Comments
Comments are closed.