A strong recovery in international commodity and equity markets coupled with improving Pak-US relations invited healthy buying on the local bourse on the first day of new fiscal year and the benchmark KSE-100 index breached 14,000 psychological level on Monday, analysts said.
The index registered healthy increase of 341.51 points and closed at the six-week highest level of 14,142.92 points. Fresh buying was seen from both local and foreign corridors. The offshore investors emerged net buyers of shares and a healthy single day inflow of 6.34 million dollars of foreign investment was seen on Monday.
The market opened on strong positive note and the index hit 14,169.78 points intra-day high. The index remained in green throughout the session. Trading activities also improved significantly as the volumes at ready counter increased to 106.453 million shares as compared to 74.047 million shares traded on last trading session. Total market capitalisation increased by Rs 82 billion to Rs 3.6 trillion. Of the total 332 active stocks, 178 closed in positive and 78 in negative while the value of 76 stocks remained unchanged.
Fauji Fertiliser Co was the volume leader with 13.438 million shares and increased by Rs 2.89 to close at Rs 113.94. In the other fertiliser sector stocks, Fatima Fertiliser Co inched up by Re 0.56 to close at Rs 25.23 with 4.094 million shares. Jahangir Siddiqui Co gained Re 1 to close at Rs 13.41 with 9.65 million shares. Investors' interest was also seen in the cement sector, as DG Khan Cement, Lucky Cement and Fauji Cement surged by Rs 1.9, Rs 4.19 and Re 0.11 to close at Rs 41.28, Rs 119.58 and Rs 5.74 with 8.496 million shares, 4.725 million shares and 2.888 million shares respectively.
NBP increased by Rs 1.64 to close at Rs 45.18 with 3.718 million shares. PTCL gained Re 0.65 to close at Rs 14.34 with 3.675 million shares. Azgard Nine inched up by Re 0.47 to close at Rs 6.87 with 3.669 million shares. Engro Foods closed at Rs 65.47, up Rs 1.02 with 3.004 million shares.
Unilever Food and Nestle Pakistan were the top gainers increasing by Rs 78.61 and Rs 61.29 to close at Rs 2,698 and Rs 4076.14 respectively, while Island Textile and Tri-Pack Films were the top losers declining by Rs 9.87 and Rs 2.99 to close at Rs 197.2 and Rs 207 respectively.
"Led by the frontline stocks the benchmark successfully breached the psychological 14,000 levels with improved volumes and trade values, despite bank holiday the turnover on quality turnover breached 100 million mark", Hasnain Asghar Ali, a senior equity market analysts said.
Fauji Fertiliser that stayed the star performer attracted institutional buying on consistent dividend yield and growth stream attracted buying from the local circuits, renewed institutional buying in almost all the sectors mainly E&P and cement sectors, since both the sector stocks will be announcing annual results in running quarter, payout rumours will allow the sectors the fuel for performance, he added.
The likelihood of resumption of healthy ties with US did support the sentiments, while incorporation of various incentives approved in budget for betterment of equity markets has indeed provide the conducive environment desired for the local equities to perform at its potential, that indeed is much higher, with the local bourse likely to continue to perform on back of fresh funds inflow from local circuits, appropriate stock selection will indeed allow the portfolios ample opportunities both for short term trade and placements, he said.
Samar Iqbal at Topline Securities said amid recovery in international equity and commodity markets coupled with positive developments in PAK-US relationship created across the board buying spree in the local market. The benchmark KSE-100 index crossed 14,100 points mark after six weeks with major activity was witnessed in fertiliser and cement stocks. Amid increase in international oil prices, oil stocks also remained supportive to the index where OGDC alone contributed more than 100 points.