The Karachi share market on Thursday witnessed a strong recovery and the benchmark KSE-100 index gained 463 points to reach 32,750 points up from 32,287 points. "Strong recovery witnessed led by selected scrips across the board on global equities rebound and regulatory clarifications on ongoing investigations," said Ahsan Mehanti at Arif Habib Corp.
He said that the recovery in global oil prices, speculations ahead of the CPI inflation data for Sept''15, expected release of $375m against US Coalition Support Fund and strong economic outlook played a catalyst role in the bullish close amid higher trades at the KSE.
During the intraday trading, the market moved in the green zone touching 32,772 points highest level. Trading activity at the ready counter was slightly lower than the previous session and overall some 180 million shares were traded on Wednesday compared to 209 million a day earlier. The market capitalisation surged by Rs 84 billion to Rs 7.036 trillion up from Rs 6.952 trillion. Daily trading value increased to Rs 9.4 billion. Trading took place in 361 companies, of which 240 closed in green zone, 102 in the red, while share price of 19 companies was remained unchanged.
Mohammad Rizwan, Vice President at Topline Securities, said that lower than expected CPI inflation number of 1.3 percent for September 2015 helped the market to close up by 1.4 percent or 463 points to 32,750 points level. A bullish momentum in the international market, boosted local investor''s confidence as they took a fresh position at the local bourse, he added.
Investors preferred to take exposure in leverage companies like TRG Pakistan (TRG) which rose by 3.7 percent with traded volume of 17.6 million shares, Pak Elektron (PAEL) which closed at its upper limit of 5 percent with traded volume 11 million shares, Maple Leaf Cement (MLCF) rose by 3.6 percent with traded volume of 10.2 million shares. He said that stability in international oil prices also led investors to take interest in oil stocks as Oil & Gas Development (OGDC), Pakistan Petroleum (PPL) and Pakistan Oilfields (POL) rose in the range of 2.7-3.4 percent.
Ahmed Saeed Khan of JS Research said that finally its bye bye to volatility and hello to positivity as it seems like the SECP and NAB''s joint statement revived the dull sentiment of market participants. Marginal positivity witnessed is an indication of likely positivity ahead, he added. As international crude oil prices recover over 2 percent positivity was witnessed in the E&P sector where biggest gainers of the day were Hascol (+5.0%), APL (+3.2%) and PPL (+4.4%).
Cherry picking continued in the cement sector and the whole sector remained marginally positive throughout the day. Major gainers in the sector were MLCF (+3.7%), DGKC (+2.7%) and FCCL (2.0%). CPI for the month of September clocked in at 1.32% vs the expected 1.80%, he added. "We do not presume that this would further build the case for an interest rate cut in the upcoming monetary policy although pressure could be expected on the banking sector", he said. Attock Petrol XD and Ferozsons (Lab) were the top gainers and increased by Rs 16.10 and Rs 13.10 to close at Rs 516.35 and Rs 770.00, respectively. Hinopak Motors and The Searle Comp were the top losers and declined by Rs 34.01 and Rs 20.01 to close at Rs 1,130.50 and Rs 380.31 respectively.