Index hits record high

Supported by massive buying across-the-board, the share market on Thursday witnessed a bullish trend as the investors awaited a pro-business budget. The benchmark KSE-100 Index crossed psychological barrier of 29,000 points, to hit a fresh all-time high level. The 100-index gained 556.26 points to close at highest-ever level of 29,543.58 points up from 28,987.32 points Wednesday.
The index touched all-time high level of 29,458 points on 16 April 2014. Commenting on the market situation, Samar Iqbal of Topline Securities said that ahead of investor-friendly budget, local stocks closed at all-time high with rising volume that reached Rs 16 billion, 6-week high.
"MSCI rebalancing which is effective on June 2 in which Pakistan weight has increased also contributed to the rising trend," she added. "Market capitalisation also crossed $70 billion mark and all large-cap stocks rallied, where PSO, ENGRO and DGKC closed 5 percent up. Also, MCB gained 4 percent, UBL up 3 percent and LUCK rose 4 percent.
KEL, which has been increasing for last few trading sessions, saw profit-taking. With 72 million shares, it fell by Re0.05, followed by LPCL with 23 million shares and TRG with 19 million shares. During an intra-day trading, the index also touched highest level of 29,608 points and lowest level of 28,987.32 points. Volume at the ready counter surged to 351.338 million shares compared to 220.121 million shares. Market capitalisation increased by Rs 133 billion. It crossed Rs 7 trillion mark, reaching Rs 7.004 trillion against Rs 6.871 trillion on Wednesday. Trading took place in 388 companies, of which 256 closed in green zone, 110 companies in red. The rates of 22 companies remained unchanged.
Among top 10 volume leaders, except K-Electric and Lafarge Pak, the rest recorded a positive trend. Despite being a volume leader, K-Electric fell by Re 0.07 to close at Rs 8.76 on 72.45 million shares. Lafarge Pak stood second, shedding Re 0.04 to close at Rs 14.44 on 22.67 million shares. TRG Pakistan Ltd increased by Re 0.37 to close at Rs 14.79 on 19.32 million shares. B.O.Punjab closed at Rs 9.73, up by Re 0.34 on 15.11 million shares. Dewan Motors moved up by Re 0.79 to close at Rs 8.03 on 15.10 million shares. With a trading volume of 9.86 million, Maple Leaf Cement gained Re 0.29 to close at Rs 30.47. JS Bank Ltd climbed by Re 0.21 to close at Rs 6.07 on 9.67 million shares.
Jah. Sidd. Co. moved up by Re 0.15 to close at Rs 11.70 on 7.70 million shares. With 7.05 million shares, Fauji Cement rose by Re 0.28 to close at Rs 17.65. D.G.K Cement closed at Rs 89.03, up Rs 3.78 on 6.98 million shares. Analyst Ahsan Mehanti at Arif Habib Corporation said that stocks closed bullish led by scrips across the board amid speculation in the pre-budget session at KSE following the ECC approval for Nepra to adjust tariff of Discos on an annual basis revising target losses to 15.75 percent, he added.
Renewed foreign interest following easing concerns for circular debt in energy sector on new policy approval for Nepra, high PSDP commitments of over Rs 1.3 trillion in the federal budget, TTP split off expected to favour peace initiatives and new fiscal deficit target lowered at 4 percent of GDP played a catalyst role in the bullish sentiment at KSE, Mehanti said.
Analyst Ovais Ahsan at JS Global said the market rallied on pre-budget optimism and strong foreign portfolio investor interest. The market finally broke a spell of directionless activity and low volumes with the bluechips leading the charge. The cement sector jumped, led by Lucky Cement and DG Khan Cement as participants expect a large jump in allocation for PSDP funds in the upcoming budget, he added.
Rafhan Maize and Nestle Pak were the top gainers with Rs 200.00 and Rs 194.23 to close at Rs 11,700.00 and Rs 8,164.23 respectively. Philips Morris Pak and Mithchells Fruit were the top losers with Rs 36.36 and Rs 27.50 to close at Rs 690.97 and Rs 669.51, respectively. Analyst Shafqat Hussain at Aba Ali Habib Securities said the benchmark KSE-100 index rallied just ahead of pre-budget session. Later in the day heavy buying was witnessed in bluechips, which pushed the index skyward.