A bullish trend continued on the Karachi share market on Wednesday and the benchmark KSE-100 index gained another 71.47 points to close at 15,588.66 points. The market opened on a strong positive note on the back of both local and foreign investors support and the index hit 15,616.09 points intra-day high level, only behind 60 points from all time highest level of 15,676 recorded on April 18, 2008.
The foreign investors'' interest continued and they remained net buyers of shares worth 2.02 million dollars. Trading activities also improved as the volumes at ready counter increased to 131.865 million shares as compared to 128.678 million shares traded on Tuesday. Total market capitalisation increased by Rs 7 billion to Rs 3.948 trillion. Of the total 333 active stocks, 171 closed in positive and 140 in negative while the value of 22 stocks remained unchanged.
PTCL was the volume leader with 9.943 million shares and gained Re 0.32 to close at Rs 19.87 followed by Jahangir Siddiqui Co that inched up by Re 0.22 to close at Rs 14.06 with 8.635 million shares. NIB Bank closed at Rs 2.64, up Re 0.16 with 8.6 million shares.
In the fertiliser sector, Engro Corporation and Fatima Fertiliser Co increased by Re 0.31 and Re 0.13 to close at Rs 108.16 and Rs 24.42 with 7.428 million shares and 6.586 million shares respectively. WorldCall Telecom inched up by Re 0.03 to close at Rs 3.15 with 5.2 million shares. Telecard Limited closed at the previous day''s closing level of Rs 3.34 with 4.367 million shares. Bankislami Pakistan gained Re 0.16 to close at Rs 9.49 with 3.737 million shares. Nishat Mills decreased by Rs 1.72 to close at Rs 58.05 with 3.708 million shares. Fauji Cement lost Re 0.10 to close at Rs 6.22 with 3.662 million shares.
Mithchells Fruit and Island Textile were the top gainers increasing by Rs 10 and Rs 7.9 to close at Rs 331 and Rs 280 respectively, while Rafhan Maize and Siemens Pakistan were the top losers declining by Rs 173.56 and Rs 22.11 to close at Rs 4451.44 and Rs 919.07 respectively.
Hasnain Asghar Ali at Escorts Capital said the benchmark KSE-100 index crawling to create history on Wednesday hit 15,616.09 points intra-day high level, very near to all time high level of 15,676 recorded on April 18, 2008. He said that cautious on law and order situation did restrict the jubilation as depicted by relatively low volumes, rise in traded value however reflected improvement in traded volumes in frontline stocks, those continued to rally, led by E&P sector, frontline banking stocks followed the pursuit, while cement and fertiliser sector stocks facing correction did found consolidation on adjustment, PTC that stayed the volume leader did attract intra-day participants, gains stayed prominent mainly on ICH sensation.
He said that news reports on severe gas supply cuts even for IPPs, more dependence on imported fertiliser due to shortage of stock locally, and high fiscal deficit mainly due to growing power sector subsidies, did keep the market men cautious, with issues on tax collection settled, recent decline in interest rates that has made the local equity market attractive due to low multiples and relatively high yields, legal stand-off settled, the irking economic and financial issues, although resolve in-sight with issuance of TFCs to OGDC, foreign debt retirement, likely increase in political volatility and deteriorating law and order issues have indeed kept the activities at local bourse subdued.
He said that selective and calculative accumulation in the frontline stocks was likely to prove prudent, dips will be craved in case of low volumes, however rise in turnover that will surface opportunities of stock and sector swapping amid more conducive investment environment premium, here and there should not be an issue.
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