RECORDER REPORT

KARACHI: The Karachi share market Monday closed higher led by cement and banking stocks on strong valuations. The benchmark KSE-100 index moved slightly up by 25 points to close at 30,070 points compared to 30,045 points Friday. Analysts said the benchmark KSE-100 index saw a muted session and managed to post minor gains. “Concerns over political situation remained high as negotiations collapsed on the pretext of the government choosing to deal with protestors with an iron hand by trying to arrest the main leadership together with a sizable number of workers,” they added.

The oil sector led the decline as a sharp downturn in crude prices created a negative sentiment in exploration stocks. PSO -0.6 percent declined on fears that OMCs could face inventory losses this quarter due to declining international oil prices.

The banks led by UBL +3.3 percent and HBL +5 percent moved the market into the green as earnings growth of over 25 percent in the sector is anticipated for the full year driven by a change in asset mix favoured towards high yielding Pakistan government bonds and tamed the NPL provisioning, they mentioned.

During the intraday trading, the market fluctuated in red and green zones. The KSE-100 index touched 30,096 points highest and 29,890 points lowest level. Despite a positive trend, volume at the ready counter declined by 20 percent as overall some 133 million shares were traded Monday against 168 million shares Friday. Market capitalisation witnessed an increase of Rs 5.4 billion to Rs 7.020 trillion up from Rs 7.014 trillion. Trading took place in 399 companies, of which 180 closed in green zone, 203 in the red while 16 remained unchanged.

Among top 10 volume leaders, seven recorded a positive trend. Pak Elektron Ltd emerged the volume leader with 15.5 million shares, losing Re 0.09 to close at Rs 30.46. Lafarge Pak stood second, up Re 0.33 to close at Rs 15.78 on 8.6 million shares. Summit Bank ranked third with 6.9 million shares, gaining Re 0.35 to Rs 3.22. With a trading volume of 6.1 million shares, Faysal Bank gained Re 0.39 to Rs 17.62.

Fauji Cement inched up by Re 0.15 to close at Rs 20.03 on 5.4 million shares. Some 5.4 million shares of Pervez Ahmed were traded and the scrip closed at Rs 3.73, up Rs 0.29. PICIC Inv Fund increased by Re 0.48 to Rs 15.78 on 5.4 million shares. Engro Corp gained Rs 2.13 to Rs 177.72 on 3.6 million shares. With a trading volume of 3.3 million shares, K-Electric lost Re 0.16 to close at Rs 8.31. Netsol Tech closed at Rs 27.29, down Re 0.38 on 3 million shares.

Rafhan Maize and Packages Ltd were the top gainers with Rs 61.11 and Rs 11.94 to close at Rs 10,561 and Rs 579.52, respectively. Siemens Pakistan and Bhanero Tex were the top losers with Rs 23.60 and Rs 23.56 to close at Rs 1,056.40 and Rs 450.26, respectively.

Commenting on the market situation, Ahsan Mehanti an analyst at Arif Habib Securities, said that stocks continued to post a positive trend and on Monday closed higher led by cement and banking stocks on strong valuations.

Rising PIB yields, expected rise in cement and fertilisers sales in upper Punjab, strong earnings outlook in auto and pharma sectors due to flood losses played a catalytic role in the bullish activity amid concerns for falling revenues of LDI operators in telecom sector, he added.

Falling FDI, exports data and reports for expected delay in $550 million IMF 5th tranche release due to prevailing political crisis impacted the sentiment, he said.