Equities turn bullish

Karachi Share Market closed higher on the first trading day of the week following the peaceful political activity in the federal capital and the benchmark index KSE-100 gained 102 points to reach some 31,300 points on Monday compared to 31,198 points on Friday. Analysts said that despite the PTI's announcement of the country-wide shutter down strikes, investors remained positive and local equities turned bullish at the start of this week.
As volumes grew significantly to 324 million shares, participants ignored the current political situation and geared for active trading. Other than oil stocks that are under solid pressure amid decline in oil prices, Cements, Chemicals grabbed investor interest, they added.
Ahsan Mehanti, an analyst at Arif Habib said that stocks closed higher led by defensive scrips in telecom, automobile and pharma sectors. "Rising political noise and major fall in global crude oil prices kept selling pressure in oil sector amid fears for inventory losses," he added.
He said that strong earnings outlook in power sector on fuel savings. Cement sector on falling coal prices and gas concessions, gas supply commitments in fertilizer sector played a catalyst role in bullish activity at KSE. During the intraday trading, the equity market fluctuated in green and red zone, touching intraday 31,442 points highest level, however the market could not sustain the altitude and finally closed at 31,299.72 points due to selling pressure in the second half. Share volume moved upward side and managed to surge by 35 per cent. Overall some 324 million shares were traded on ready counter compared to 240 million in the previous session. However, despite positive sentiments, the market capitalisation posted a decline of Rs 5 billion to Rs 7.147 trillion from Rs 7.152 trillion.
Analysts at the JS said that the market opened the week on a positive note as the November 30th protest remained largely peaceful with signs that the leadership will be willing to negotiate with the government. The bulls were spurred by a benign CPI inflation number of 3.96 for November with HUBC +4.77% and KAPCO +4.96% leading gains as investors hunted high dividend yield plays, they added.
Engro Corporation +4.8% was amongst the market leaders as the highly levered conglomerate is set to gain from interest rate cuts in the wake of softening inflation. Fauji Cement +4.74% and Maple Leaf Cement +2.67% rallied as the Cement sector gained on expectations of strong demand emanating from development spending anticipated in the coming months and a lower interest rate scenario, they pointed out.
Trading took place in 364 companies, of which 229 closed in green zone, 109 in the red, while share price of 26 companies remained unchanged. Among top 10 volume leaders, nine companies recorded a positive and one negative. With a trading volume of 28.4 million shares, Maple Leaf Cement emerged the volume leader, gaining Re 0.98 to close at Rs 37.63. Jah. Sid. Co stood the second, up Re 0.63 to close at Rs 15.35 on 21 million shares. K-Electric Co ranked the third with 16.5 million shares, gaining Re 0.40 to reach Rs 8.03.
Pak Elektron closed at Rs 32.32, swelled by Rs 1.52 on 15 million shares. Some 14 million shares of Fauji Cement were traded and the scrip moved up by Rs 1.08 to Rs 23.87. DGK Cement increased by Rs 1.66 to close at Rs 94.00 on 11 million shares. With 9.9 million shares volume, PTCL gained Rs 1.10 to Rs 23.10. Pioneer Cement closed at Rs 72.78, down Rs 2.33 on 9.6 million shares.
Similarly, share price of Engro Fertilizer Ltd mounted by Rs 2.69 to Rs 65.74 on 8.9 million volumes and with some 8.8 million shares trading, Pak Int. Bulk closed at Rs 24.88, gaining Re 0.27. Wyeth Pak Ltd and Bata (Pak) were the top gainers with Rs 183.51 and Rs 89.25 to close at Rs 4,150.00 and Rs 3,198.00, respectively. Colgate Palmolive and Murree Brewery were the top losers with Rs 83.00 and Rs 54.00 to close at Rs 1,700.00 and Rs 1,146.00, respectively.