RECORDER REPORT
KARACHI: Karachi Stock Exchange showed strong recovery after lawmakers reaffirmed their commitment to democracy at the joint session of parliament Tuesday. The benchmark KSE-100 index gained 767 points to close at 29,260 points compared to 28,494 points Monday. Analysts said the market celebrated the phenomena political problems are moving towards a democratic solution after the National Assembly reaffirmed the Prime Minister’s position.
Stocks performed well across-the-board with the cement sector leading the way and overall the KSE-100 index went up by 2.7 percent, they added.
Ahsan Mehanti, an analyst at Arif Habib, said stocks closed bullish after parliamentarians reaffirmed commitment to democracy, constitution in a joint session on Tuesday speculating end to political crisis.
Record earning announcement by Lucky Cement, low CPI for August 2014 at 6.99 percent YoY, renewed foreign interest in oil and banking stocks and expected ease in circular debt on tariff rationalisation measures for release of $550 million IMF tranche next month played a catalyst role in bullish activity, he added.
He said the market crossed 29,000 points level after all major political parties supported the democratic setup in joint session of parliament.
During the intra-day trading, the market remained in green zone and the KSE-100 index touched 29,284 points highest level. Following the positive trend volume at the ready counter urged to 182 million shares compared to 423 million in previous session.
With an increase of Rs 168 billion, market capitalisation reached Rs 6.879 trillion against previous Rs 6.711 trillion. Trading took place in 367 companies, of which 301 closed in green zone, 56 in red, while 10 companies remained unchanged.
Among top 10 volume leaders, only one company recorded a negative trend. Maple Leaf Cement emerged the volume leader as its 12 million shares were traded, gaining Rs 1.33 to close at Rs 27.96. K-Electric Ltd stood second, down Re 0.02 to close at Rs 8.24 on 10.6 million shares. JS Bank Ltd ranked third with 9.3 million shares to close at Rs 9.84, up Re 1. With a trading volume of 8.4 million shares, Fauji Cement gained Re 0.93 to Rs 19.64.
Pak Elektron Ltd increased by Rs 1.24 to close at Rs 30.57 on 8.2 million shares. Some 7 million shares of B.O.Punjab were traded and the scrip closed at Rs 8.29, up Re 0.30. D.G.Khan Cement gained Rs 3.05 to Rs 76.47 on 6.2 million shares. Samba Bank increased by Re 0.71 to Rs 7.01 on 5.7 million shares.
With a trading volume of 5.5 million, Lafarge Pak gained Re 0.18 to close at Rs 15.73 and Engro Fertilizer closed at Rs 53.39, up Re 0.81 on 5.4 million shares.
Nestle Pak and Rafhan Maize were the top gainers with Rs 339.99 and Rs 250.00 to close at Rs 7,899.99 and Rs 10,750.90, respectively. Island Textile and National Foods were the top losers with Rs 32.50 and Rs 8.05 to close at Rs 929.00 and Rs 716.88, respectively.
LUCK hit its upper circuit following a consensus beating result reporting an EPS of Rs35.08 (up 17 percent YoY). PIOC, MLCF, KOHC were the other gainers in the cement sector reaching their upper circuits.
Another incentive to the market was CPI inflation number which clocks in for August 2014 at 6.99 percent YoY vs 7.9 percent YoY in July 2014 takes 2MFY15 inflation to 7.44 percent YoY.
Samar Iqbal, an analyst at Topline, said investors believe that chances of any military intervention are diminishing and resultantly the market gained 2.7 percent. Volumes rose to 183 million shares and the value to $96 million (Rs9.6 billion). Renewed interest helped PSO rally 4 percent, while Engro, LUCK, HUBC and PSMC closed at upper circuit breaker, she maintained.
