Karachi Stock Exchange (KSE) Tuesday closed higher on strong valuations and the benchmark KSE-100 index rose by 143 points to close at 29,729 points compared to 29,586 points Monday. Commenting on the market situation, Ahsan Mehanti, Director Arif Habib Securities, said stocks posted a positive trend on the second consecutive day led by second and third-tier stocks on strong valuations.
He said although the overall trading activity was higher than previous day, but the trade remained thin amid cautious activity as investors assessed likely impact on flood affected sectors. "Strong cement sales data for August 2014, strong earnings outlook in auto and pharma sectors due to ongoing flood relief efforts and expected change in the SBP policy rate decisions this month played a catalytic role in the bullish activity," he added.
During the intraday trading, the market fluctuated in green zone and the KSE-100 index touched 29,869 points highest level. Following a positive trend, volume at the ready counter also surged to 133 million shares compared to 90 million shares on Monday. With an increase of Rs 24 billion, market capitalisation reached Rs 6.975 trillion against Rs 6.952 trillion on Monday. Trading took place in 403 companies, of which 235 closed in green zone, 147 in red, while 21 remained unchanged.
"Continuous foreign buying and further ease in political tension helped equities to inch up further," said Samar Iqbal, analyst at Topline Securities. The KSE-100 index gained 0.48 percent to close at 29,729 points level, while the value increased to $70 million or Rs 7 billion. Speculation that government is planning to make a policy of drug prices helped pharmaceutical companies to close higher, she said. Similarly, car assembler stocks also rallied due to weakening Japanese yen against the US dollar.
Among top 10 volume leaders, eight companies recorded a positive trend. TRG Pak (R) emerged the volume leader as its 11 million shares were traded, gaining Rs 0.21 to close at Rs 2.72. TRG Pak Ltd stood second and inched up by Re 0.15 to close at Rs 12.16 on 7.9 million shares. PICIC Inv Fund ranked third with 6.9 million shares, gaining Re 0.07 to Rs 14.69. With a trading volume of 5.9 million shares, Maple Leaf Cement lost Re 0.14 to Rs 28.79. Fauji Cement increased by Re 0.16 to close at Rs 19.93 on 5.2 million shares. Some 5 million shares of Pak Elektron Ltd were traded and the scrip closed at Rs 33.06, up by Re 0.03. K-Electric decreased by Re 0.03 to Rs 8.18 on 4.1 million shares. Engro Fertilizer increased by Re 0.16 to Rs 53.76 on 3.6 million shares.
With a trading volume of 3.5 million shares, Pak Petroleum gained Re 0.36 to close at Rs 225.67. Lafarge Pak closed at Rs 15.50, up Re 0.09 on 3.2 million shares. Wyeth Pak Ltd and Services Ind Ltd were the top gainers with Rs 201.60 and Rs 35.72 to close at Rs 4,400.00 and Rs 820.02, respectively. Bata (Pak) and Pak Tobacco were the top losers with Rs 53.28 and Rs 50.00 to close at Rs 3,175.00 and Rs 1,100.00, respectively.