Karachi equities ended positive Wednesday because of what analysts said strong valuations in select stocks. The KSE-100 index increased by 0.70 percent to close at 33,020.26 points compared to Tuesday''s 32,791.71 points. In intraday trade, the benchmark index remained bullish and rallied to hit the session''s high of 33,070.77 points.
"Stocks closed bullish led by select scrips across the board on strong valuations," viewed Ahsan Mehanti of Arif Habib Corp. The day''s catalysts, the analyst said, were improving Pak-India relations, recovery in global equities, crude prices, upbeat local cement sales data for Nov''15 and renewed institutional interest in leveraged stocks.
"After eight trading sessions, subdued fear of foreign selling tosses the KSE-100 index above 33,000 level," said Mohammad Rizwan, Head of Sales at Topline Securities. Trading turnover surged to 195 million shares valuing up to Rs 10.58 billion compared to Rs 9.47 billion of previous session. Of the 350 scrips traded, 206 appreciated in value, 123 lost their worth and that of 21 stayed unchanged.
With market cap accumulating to Rs 6.95 trillion, foreign portfolio investment settled in the green marking a net buying of $212,468. Silk Bank, rising to Rs 1.95 at close, led volumes with 23 million shares. Other most-traded issues included SSGC 21 million, JSCL 14 million, Pak Elektron 8.2 million, SNGPL 7.9 million, TRG Pakistan 7.9 million, D.G Khan Cement 7.6 million, Pakistan International Bulk Terminal 6.8 million, Lotte Chemical 5.3 million and Byco Petroleum 4.6 million shares.
Futures market saw increased trade of contracts which stood at 30.4 million. "Weakness in international commodity prices tempted investors to scavenge for cement and steel stocks," observed Rizwan. Consequently, LUCK, MCLF and DGKC gained 0.17-2.4 percent while MUGHAL and ISL rose by 0.8 and 4 percent. Attractive valuation, according to Rizwan, due to lower international oil prices led to renewed investor interest in E&P stocks. This helped OGDC, PPL and POL gain 0.15 to 1 percent.