Bull-run continues

The Karachi share market opened the week on a bullish note reaching 31,752.17 points under the lead of fertilizer, cement and telecom sectors. On Monday, the first trading session saw the benchmark index adding 338.21 points or 1.08 percent to 31,413.96 points of Friday last. Having peaked to intraday high of 31,788.30 points, the index moved both ways and was once seen dipping to the session low 31,341.09 points.
The trading turnover, however, remained low at 241.4 million shares compared to 285.0 million of the previous session. The traded value appreciated to Rs 13.7 billion from Rs 12.6 billion. Overall, of the 366 scrips traded, 255 posted gains, 91 lost their worth while 20 stayed unchanged. The market capitalisation also inched up to Rs 7.0 trillion compared to the previous Rs 6.9 trillion.
Local institutional investors appeared to have ignored the risk-aversion of their foreign counterparts whose net selling for the day totalled $3.71 million.
Ahsan Mehanti of Arif Habib Corp attributed the bull-run to investors' speculation ahead of the quarter earnings announcements.
"Trade remained high led by fertilizer, cement and telecom scrips on strong valuations," he said. The oil stocks showed recovery amid rise in US WTI crude oil prices and revision in local petroleum prices, the analyst added.
Mehanti viewed that the banking stocks battering on the back of investors' expectations for a likely institutional interest on the government's offer for HBL shares through book building that is due to start from today (Tuesday).
Maple Leaf Cement, appreciating by Rs 1.39, led the day's volume by counting 18.4 million of its listed shares traded.
Other best performers were Pak Elektron 17.6 million, Fauji Cement 17 million, TRG Pakistan 16.4 million, K-Electric 16.1 million, Fauji Fertilizer Bin Qasim 8.2 million, Engro Fertilizer 7.6 million, D.G Khan Cement 6.8 million, PIA 6.3 million and Japan Power 5.6 million shares.
Futures trade fell to 38.57 million contracts from the previous 38.68 million.
The market, according to Ovais Ahsan of JS Research, opened the week on a bullish note as institutional investor came in to buy blue chip stocks such as Pakistan Petroleum and Engro Corporation that gained up 3.45 and 3.31 percent.
Engro Foods, up five percent, hit limit-up as the company qualified for a Shariah-compliant stock on the back of latest results.
"High dividend-yielding stocks were also flavour of the day as investors chased high cash payout stocks in the face of a declining interest rate scenario," the analyst added.