Index hits fresh peak

On Friday, the benchmark 100-share index of Karachi Stock Exchange (KSE) again hit an all-time high of 32,731.61 points on the back of news about discount rate reduction and rally in cement sector. The KSE-100 index closed at 32,731.61 points, up by 0.77 percent or 251.26 points as compared to 32,480.35 points Thursday.
Trading value at the local bourse increased to Rs 17.763 from Rs 12.486 billion. The market capitalisation also improved by Rs 52.736 billion or 0.71 percent to reach Rs 7,491.831 billion from Rs 7,439.095 billion. The share volume stood at 322.978 million from 230.14 million shares.
Out of 383 scrips, 236 scrips advanced, 131 scrips declined while the value of 16 scrips remained unchanged. During intraday trading, the KSE-100 index remained sporadic, touching highest level of 32,776.46 points and plunging to 32,465.35 points lowest level. Analysts said stocks closed yet again at an all-time high led by scrips across the board on positive economic outlook.
They said bulls dominated the KSE-100 Index over anticipation of discount rate cut by 50 bps. Rally led by cement stocks amid attractive valuations especially Cherat Cement which is still trading at very low multiples. Increased exports of cement, expected uplift projects of government plus private sector construction put the sector in investors' radar. They said speculations on the impact of stronger rupee in auto & pharma sector, falling CPI inflation on expected cut in SBP policy rate, falling international oil prices on power sector and lower coal prices on cement sector and rising textile sector exports data played a catalytic role in bullish activity.
Fauji Cement emerged the volume leader on 26.89 million shares, gaining Rs 1.04 to close at Rs 27.80. K-Electric stood second, up Re. 0.27 to close at Rs 9.55 on 25.24 million shares. Engro Corp closed at Rs 236.56, up Rs 4.19 on 17.90 million shares. P.T.C.L advanced by Re. 0.91 to close at Rs 24.20 on 12.84 million shares. Maple Leaf Cement rose by Rs 1.04 to close at Rs 47.50 on 12.30 million shares. D.G.K Cement increased by Re. 1.64 to close at Rs 116.97 on 11.59 million shares. Jah.Sidd.Co closed at Rs 15.09, down Re. 0.24 on 10.69 million shares. Engro Foods Ltd rose to Rs 118.69, up Rs 5.20 on 9.97 million shares. Lafarge Pak closed at Rs 17.99, up Re. 0.11 on 9.36 million shares. Pak Int. Bulk gained Rs 1.25 to close at Rs 26.28 on 9.11 million shares.
Rafhan Maize and Siemens Pakistan were the top gainers with Rs 100 and Rs 58.51 to close at Rs 11,100 and Rs 1,228.82, respectively. Wyeth Pak Ltd and Unilever Foods were the worst losers with Rs 189 and Rs 102.23 to close at Rs 4010 and Rs 8,777.77, respectively.