RECORDER REPORT
KARACHI: Sentiments on the equity market remained positive on Tuesday on the back of what analysts said strong valuations of certain scrips in the current earnings announcement season.
The major catalyst, analysts said, was the Saturday's 100 basis points policy rate-cut to 8.5 percent by the central bank and depleting fuel and coal prices.
Muhammad Mobeen of JS Research said the bulls kept the KSE 100-share index 'barely' in the green zone to close at a record 34,538.45 points compared to Monday's 34,466.53 points, gaining 72 points.
"Stocks closed at a new all-time high in the earnings season led by oil, fertilizers and cement stocks on strong valuations," viewed Ahsan Mehanti of Arif Habib Corp.
The trading volume grew to, what Topline analyst Samar Iqbal observed, a six-year high to stand at 340.2 million shares against 362 million of the previous day.
"Volumes touched the six-year high as Rs 23 billion worth of share exchanged hands today at local bourse," she said. After falling interest rate the corporate result season forced equity investors to trade actively in the market, the analyst added.
The shares traded valued up to Rs 22.99 billion compared to Rs 20.62 billion of the previous session. Total 384 scrips were traded, of which 152 appreciated, 222 depreciated and 10 unchanged. The market capital also ended almost flat at Rs 7.83 trillion.
Maple Leaf Cement was the day's volume leader losing 49 paisa on each of its 'healthy' 39 million traded shares. The stock rallied after announcing above expectation half yearly financial results (EPS 2.72, 10pc dividend).
K-Electric with 28 million shares, the Bank of Punjab 21 million, Lotte Chemical 20 million, Pakistan International Bulk Terminal 17.4 million, Fauji Fertilizer Bin Qasim 12.2 million, Hascol Petroleum 10 million, PTCL 9.3 million, Pak Elektron 8.9 million and Pioneer Cement 6.8 million appeared as best performers of the day.
Mobeen said the Monday's major news was in K-Electric, with China Overseas Investment Corporation and China Machinery Engineering Corporation having agreed to develop a 700MW coal-based power project at $ 1 billion.
The OMC and E&P sectors remained mostly upbeat due to increasing crude oil prices with APL being the only exception to loss 2.7 percent because of its 'disappointing' financials.
Mehanti said renewed institutional support in oversold oil stocks amid hopes for recovery in international oil prices played a catalyst role in positive activity at KSE.
This, he said, was despite pressure in selected stocks across the board in the future rollover week and reports of Moody's Investor Services warnings on fall in credit ratings due to ongoing fuel crises.
The turnover on the futures market slid to 71 million shares from 76 million a day earlier.
