After two consecutive negative trading sessions, Karachi stock market on Tuesday showed some recovery led by oversold oil stocks on strong valuations. The benchmark KSE-100 index managed to gain 67.61 points to close at 28,411.49 points up from 28,343.88 points on Monday. An analyst, Ahsan Mehanti at Arif Habib Corporation said that stocks closed higher amid thin trade led by oversold oil stocks on strong valuations and rally in global stocks following the Modi''s victory as Indian Prime Minister.
"The renewed foreign interest, record rise in home remittances to $12.9 billion in July-April 2014 and Finance Minister statement for no increase in Capital Gain Tax (CGT) in the federal budget impacted the sentiments," he added. Improvement in State Bank economic indicators on foreign reserves and fiscal deficit played a catalyst role in positive sentiments on the KSE despite the pressure in energy sector on rising circular debt, he mentioned.
During an intra-day trading, the index touched 28,485.96 points highest and 28,306.40 points'' lowest level. Trading activity was better than the previous session and the volume at the ready counter increased to 121.326 million shares compared to 88 million shares on Monday. The market capitalisation surged by Rs 13 billion to Rs 6.794 trillion from Rs 6.781 trillion.
Trading took place in 340 scrips, of which 119 posted a positive growth, whereas 201 companies were closed with a negative sign and the share price of 20 companies remained unchanged. Among top ten scrips, four recorded a positive trend, six negative whereas the share price of one company remained unchanged. Soneri Bank Ltd was volume leader and surged by Re 0.58 to close at Rs 14.19 on 10.10 million shares, while Jah. Sidd. Co stood the second in a row and decreased by Re 0.48 to close at Rs 11.22 on 9.74 million shares. Lafarge Pak closed at Rs 13.49, declined by Re 0.20 on 7.52 million shares.
B.O.Punjab recorded a negative trend by Re 0.07 to close at Rs 9.88 on 5.35 million shares. Byco Petroleum with 5.09 million share gained Rs 1 to close at Rs 11.62. Mari Petroleum witnessed a negative growth of Rs 7.86 to close at Rs 253.90 on 3.94 million shares. Engro Fertilizer Ltd surged by Re 0.23 closed at Rs 61.04 on 3.89 million shares.
Fauji Cement inched up by Re 0.18 to close at Rs 17.52 on 3.86 million shares. Nishat (Chunian) closed at Rs 40.62, decreased by Rs 1.92 on 3.69 million shares. With trading volume of 2.9 million shares, NIB Bank Ltd posted a decline of Re 0.02 to close at Rs 2.47.
Rafhan Maize and Philip Morris Pak. were the highest gainers and surged by Rs 350.00 and Rs 44.91 to close at Rs 10,150.00 and Rs 943.17 respectively, while Siemens Pak and Shezan Inter were the top losers and decreased by Rs 15.49 and Rs 15.20 to close at Rs 1,180.01 and Rs 879 respectively. An analyst, Yawar Zaman at Aba Ali Habib Securities said that the market moved both ways throughout the day amid no clear direction, despite the rumours prevailing in the market regarding no increase in CGT in the upcoming budget.
Investors remained on a safe path resulting low volumes, he said and added that in the upcoming days, the equity market expected to remain volatile till the SBP announces its monetary stance.
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