Backed by institutional investors, the Karachi share market maintained its pre-budget rally Tuesday amid higher trade largely in what equity analysts said sideboard scrips. Attracted by multiple positives, foreign investors scrambled to make net buying of $13.23 million. The day witnessed offshore investors buying net portfolios of $31.58 million while making $18.35 million selling.
The KSE-100 index gained 332 points or 0.99 percent to 33,895.34, a level the benchmark index hit after 14 weeks. Major activity was seen in mid-tier stocks as the trading turnover rose to five-week high of 316.68 million shares compared to 261.15 million of previous session.
The traded value moved northward and accumulated to Rs 16.23 billion from Monday's Rs 11.62 billion. Of the 377 issues traded, 205 appreciated, 142 depreciated while 30 ended unchanged. The market capitalisation swelled beyond Rs 7.314 trillion compared to Rs 7.248 trillion of the previous day. The index crossed 34,000 mark to hit the intraday high of 453 points after witnessing profit-taking towards the end of the day's trade.
K-Electric, which closed down at Rs 8.04, led the day's volume by counting 32.76 million of its listed stocks traded. Other best performers included Pak Elektron 20.2 million, Ghani Automobile 16.4 million, TRG Pakistan 14 million, Bank of Punjab 14 million, Engro Fertiliser 13 million, Jahangir Siddiqui Company 11.3 million, Fauji Cement 10.2 million, Pakistan International Bulk Terminal 10 million and Byco Petroleum 8.6 million shares.
Trade on the futures market grew to 33 million contracts from the previous 26.66 million. "Pre budget rally continued at KSE amid higher trades led by oil, cement and banking stocks after the FBR slashed sales tax rates on petroleum products, NEC approval of Rs 1.5 trillion development outlay and expectations on pro-banking sector federal budget," viewed Ahsan Mehanti of Arif Habib Corp. The analyst cited strong institutional interest on favourable CPI inflation data, record PSDP commitments in the federal budget and hike in local POL prices as day's catalyst.
Samar Iqbal at Topline Securities attributed the bull-run to continuous institutional support that helped the market rally with rising volumes. Interest in heavyweights like MCB, up five percent, and OGDC, up two percent, added 150 points to the index, she observed. "Sideboard scrips dominated the index with KEL, GAIL, TRG, BOP and PIBTL remaining volumes leaders," said JS analyst Umair Hasan. Motivated by the recent one percent discount rate-cut, the cement sector kept attracting investor interest with DGKC, LUCK and MLCF gaining 1.3, 2.8 and 1.7 percent.
The oil and gas sector continued its upward momentum as PSO, OGDC, and SHEL ended 2.1, 2.2 and 1.1 percent higher. The banks remained mixed through the day's trade with undervalued scrips remaining attractive at current levels as MCB ended at its upper-circuit and UBL and ABL ended 3.5 and 1.7 percent higher. Moving forward, the analysts expect the market to be volatile primarily on the back of upcoming federal budget.
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