RECORDER REPORT
KARACHI: The Karachi share market witnessed another bull-run on Thursday amid hopes for a political patch-up to end the stand-off in Islamabad. The benchmark KSE-100 index gained 200 points to close at 28,865 points compared to 28,665 points Wednesday.
“Political tensions started easing after the government began negotiations with the parties protesting in Islamabad,” said Samar Iqbal, Assistant Vice President Equity Sales, Topline.
The US statement “Washington does not support any extra constitutional changes to the democratic system in Pakistan,” also helped boost sentiment, she added.
Recovery was seen at the bourse as the volume showed a slight improvement to 151 million shares, while the value rose to $82 million, she maintained.
Ahsan Mehanti, an analyst at Arif Habib, said stocks closed bullish amid hopes for political patch-up after the government team started negotiations with protesting leaders to handle political crisis.
However, the rupee fall and reports of the deadlock in consultative talks impacted the sentiment later in the trading session, he added.
Strong earning announcements in pharmaceuticals, M&A activity in insurance sector and expected ease in circular debt following tariff rationalisation measures linked by the IMF for release of $550m tranche next month played a catalytic role in the bullish activity in oil and energy stocks, he maintained.
During the intra-day trading, the market stayed in green zone and the KSE-100 index also touched 29,240 points highest level. Volume at the ready counter urged to 152 million shares compared to 141 million in previous session.
Market capitalisation increased by Rs 49 billion to Rs 6.751 trillion against previous Rs 6.702 trillion. Trading took place in 380 companies, of which 240 closed in green zone, 120 in red, while share price of some 20 companies remained unchanged.
Among top 10 volume leaders, seven companies recorded a positive trend. Fauji Cement emerged the volume leader on some 12.71 million shares. It lost Re 0.23 to close at Rs 18.94. Pak Elektron Ltd stood second, up Re 0.62 to close at Rs 29.13 on 11.87 million shares. B.O.Punjab ranked third with 10 million shares, losing Re 0.03 to close at Rs 8.04. With a trading volume of 9.8 million, Maple Leaf Cement gained Re 0.81 to Rs 27.36.
D.G. Khan Cement increased by Re 0.78 to close at Rs 74.83 on 5.5 million shares. Some 4.7 million shares of Lafarge Pak were traded and the scrip closed at Rs 15.32, up Re 0.05. Jah. Sidd. Co. lost Re 0.03 to Rs 8.57 on 4.2 million shares. Adamjee Ins. gained Re 0.15 to Rs 49.48 on 3.55 million shares.
Pakistan Int. Bulk increased by Re 0.13 to close at Rs 20.62 on 3.55 million shares and Avanceon Ltd closed at Rs 26.57, up Re 0.86 on 3.52 million shares. Rafhan Maize and Island Textile were the top gainers with Rs 99.00 and Rs 42.50 to close at Rs 10,725.00 and Rs 902.50, respectively. Unilever Foods and Bata (Pak) were the top losers with Rs 150.00 and Rs 87.00 to close at Rs 8,000.00 and Rs 3,300.00, respectively.
Analysts said the KSE-100 Index spiked up by 0.70 percent to close at 28,865 points. “Market opened on a bullish note on Thursday as resumption of talks between the government and political parties was hailed by market participants, which kept the KSE-100 index in the green zone,” Fahad M Ali, an analyst at JS Global.
However, the index witnessed an intraday correction as the fear grew over breakdown in talks. Textile sector remained in the limelight as US dollar touched a 6-month high against Pak rupee, crossing Rs101 in both open and interbank market, he added.
Going forward, he said it is being expected that the market will remain positive if political conditions settle down with banking and oil & gas stocks being the preferred plays.
