Equities reassemble

The Karachi share market opened the week on a bullish note led by select scrips across-the-board and the benchmark KSE-100 index gained 480 points or some 1.5 percent to close at 31,491 points Monday compared to 31,011 points on Friday. Analysts said the Karachi share market rallied after improvement in global equity markets and institutional activity was also seen in index heavyweights. The arrival of $1.05 billion of the IMF Extended Fund Facility (EFF) also supported the investor sentiment, they added.
Fahad Hussain Khan, an analyst at Adam Securities, said volatility ended at the local bourse as bulls kept the index bullish in entire session after Saudi Arabia, the world's largest oil exporter, showed confidence that crude prices will rebound with global economic growth boosting demand, provided the munch needed support to get bulls back in oil & gas sector. In addition, investors poured money in textile sector as well amid shattering fears of losing GSP+ status, he maintained.
The equity market opened on a positive note and the KSE-100 index mostly fluctuated in the green zone, touching intraday high of 31,600 points. Trading volume moved upward as over some 162 million shares were traded compared to 141 million in the previous session. With an increase of Rs 110 billion, market capitalisation reached Rs 7.202 trillion at the end of the session.
Ahsan Mehanti of Arif Habib Corp said stocks closed bullish ahead of year-end close led by select stocks across-the-board on improved economic and political outlook. He said institutional interest in oversold power sector and oil stocks played a catalytic role in bullish activity after Brent oil prices bounced above $60 and the IMF disbursement. Analysts at JS said the market witnessed a bullish momentum Monday and closed up by 480 points. The rally was led by oil & gas sector where POL and OGDC spiked up by 4.8 percent and 2.4 percent, respectively as oil recovered in international market over the weekend.
PSO remained in the limelight up by 1.2 percent as the company asked government to release Rs 100 billion immediately. Textile sector also contributed to the KSE-100 index as NCL closed at its upper circuit due to exports up by 13 percent YoY in Nov-2014.
In banking sector, NBP remained in the limelight as the ECC approved Rs 6.5 billion for NBP to bridge Bangladesh operations. KEL escalated 2.7 percent due to expectation of investors towards better earnings. Going forward we expect the volumes to pick up. Investors should focus on cement and banking sector.
Among top 10 volume leaders, all recorded a positive trend. With 15 million shares, K-Electric Ltd emerged the volume leader, gaining Re 0.24 to close at Rs 8.98. TRG Pak Ltd stood second, up Re 0.78 to close at Rs 14.56 on 13 million shares. Lalpir Power ranked third with 7.3 million shares, gaining Rs 1.09 to Rs 30.05.
Sui South Gas closed at Rs 38.34, up Re 0.11 on 6.3 million shares. Some 6.2 million shares of B.O.Punjab were traded and the scrip moved up by Re 0.10 to Rs 9.98. D.G.K Cement gained Rs 2.05 to Rs 111.11 on 5.9 million shares. With 5.8 million shares, Fauji Cement increased by Re 0.21 to Rs 24.50. Bank Al-Falah closed at Rs 31.48, gaining Re 0.84 on 5.5 million shares.
Maple Leaf Cement surged by Re 0.33 to Rs 42.16 on 5.4 million volumes and with some 4.4 million shares, Nishat (Chun) closed at Rs 45.55, up Rs 2.16. Nestle Pak and Bata (Pak) were the top gainers with Rs 425.00 and Rs 105.72 to close at Rs 8,925.00 and Rs 3,416.72, respectively. Rafhan Maize and Exide (Pak) were the top losers with Rs 274.22 and Rs 98.35 to close at Rs 10,000.78 and Rs 1,868.65, respectively.