The Karachi share market kept its bullish momentum and hit another historic high Wednesday. Analysts attributed the day's rally to investors' positive expectations ahead of the State Bank's discount rate announcement due Saturday and a favourable earnings session. The benchmark KSE 100-share index gained 208 points to close at 34,329.50 points compared to Tuesday's 34,121.30 points.
"Investors' enthusiasm in expectations of a reduction in key policy rate and better December quarter earnings helped the index make gains," analyst Samar Iqbal said. The offshore investors did a net buying of $1.115 million. The index hit the intra-day high of 34,400.31 points before sliding to the intraday of 34,121.30 points. The trading volume at the ready counter was recorded at 355.4 million shares, up 13 percent from 315.6 million of the previous session.
"Volumes kept on increasing amid renewed interest in blue-chip stocks," Samar said. About 33 percent of the value traded was in FFC, PSO, ENGRO and DGKC, Samar observed. Arhum Ghous of JS Research said while the banking sector showed a mixed trend due to policy-rate-conscious investors' approach, the oil and gas stocks saw HASCOL hitting its upper circuit on the back of the scrip's likely better EPS in the upcoming result.
HINO too hit its upper circuit after announcing a tremendous quarterly Rs 28.67 EPS versus Rs 19.16 in the last quarter. The MLCF, FCCL and FECTC downed by 1.0, 0.9 and 3.1 percent as the cement sector witnessed some profit-taking. Overall, the stocks traded gained 17 percent to stand at Rs 21.9 billion ($219 million), last seen in June 2008, against Rs 18.74 billion a day earlier. In all, 400 scrips changed hands of which 180 appreciated, 198 depreciated while 22 remained unchanged. The market capitalisation grew from Rs 7.764 trillion to Rs 7.792 trillion.
Jahangir Siddiqui Company with 29.7 million traded shares led the volume to gain 65 paisa at Rs 18.95. Other best performers included Fauji Fertilizer (18.1 million), K-Electric (16.5 million), TRG Pakistan (14 million), Fauji Fertilizer Bin Qasim (12.5 million), PIA (12.1 million), Pakistan International Bulk Terminal (10.8 million), Maple Leaf Cement (10.6 million), Nishat (Chun) (10.5 million) and Pak Elektron (10.4).
Trading on the futures market dipped to 29.7 million from Tuesday's 33.8 million shares. Analyst Ahsan Mehanti of Arif Habib Corp said expected resolution to recent fuel shortage issues likely to benefit second tier OMCs and oil refineries owing to local demand, speculations ahead of new auto policy, reports for rising urea dispatches by FFC and its higher expected dividend income from subsidiaries played a catalytic role in positive activity at KSE.
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