Bullish trend continued at Karachi share market on Wednesday and KSE-100 index gained 109.40 points to close at 8,878.64 points against 8,769.24 points on the back of continuing interest of foreign investors who remained net buyers of shares worth $15.10 million. The market opened on a positive note and the index breached 8,900 points barrier to hit 8,939.24 points intra-day high, up 170 points.
However, profit taking in some select stocks, mainly by local investors, reduced the gains. The market witnessed healthy trading activity. The daily volume at ready counter declined slightly to 255.391 million shares as compared to 302.831 million shares traded on Tuesday.
Market capitalisation increased by Rs 29 billion to Rs 2.588 trillion. Trading took place in 380 stocks, out of which 201 closed in positive and 160 in negative while the value of 19 stocks remained unchanged. Bank Al Falah was the volume leader with 32.071 million shares and gained Re 0.71 to close at Rs 12.77. In other banking stocks, NBP surged by Rs 3.67 to close at Rs 77.38 with 14.382 million shares.
Investors' interest continued in the E&P sector and OGDC and PPL were up by R1.69 and Rs 3.21 to close at Rs 109.98 and Rs 212.91 with 20.488 million shares and 8.351 million shares respectively. Pak PTA lost Re 0.25 to close at Rs 4.73 with 20.071 million shares.
Arif Habib Sec gained Rs 1.63 to close at Rs 38.20 with 13.493 million shares. Jahangir Siddiqui Co lost Re 0.15 to close at Rs 26.09 with 11.760 million shares. Profit taking was witnessed in the cement sector, as DG Khan Cement and Lucky Cement declined by Re 0.12 and Re 0.10 to close at Rs 33.61 and Rs 71.97 with 10.838 million shares and 7.987 million shares respectively.
PTCL lost Rs 1.03 to close at Rs 20.65 with 9.111 million shares. Bata (Pak) and Pak Services were the highest gainers and gained Rs 15.00 and Rs 8.00 to close at Rs 900.00 and Rs 225.00 respectively while Rafhan Maize and Nestle Pakistan were the worst losers and lost Rs 48.00 and Rs 29.10 to close at Rs 1452.00 and Rs 1070.00 respectively.
Hasnain Asghar Ali at Aziz Fidahusein Co said that declining trend in oil prices in international market became an excuse for profit taking in expensive stocks, mainly of the exploration sector, while sector stocks trading at lower multiples witnessed renewed buying interest. Offloading was quite persistent during the session.
Surge in fertiliser offtake and price per bag allowed the accumulators from the local circuit to continue building their positions as some of the listed stocks of the sector offered consistent dividend yields, while long term investors would benefit from the conglomerate having core business as fertiliser, provided other variables stayed conducive. Increase in price per bag and cement dispatches turned the cautious accumulations to a much aggressive buying activity in the main stocks of the sector.
He said that the low priced stocks contributed to the gain and turnover, as foreign inflow stayed away as reflected by low turnover and value of trades. Local players did come in on different intervals to avoid prolonged stagnation, that tried to surface due to absence of substantial foreign inflow and mainly the index heavyweights were traded for sustaining green numbers.
Banking stocks kept the interest of local participants alive, as it was being anticipated that since the financials of the banks had already witnessed the worst in form of provisioning and write-offs. Upcoming quarters would witness improvement due to some relaxations on NPLs treatment to be offered by the regulator and with improving economy. The participants comfortably accumulated inexpensive and low price stocks of the sector.
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