RECORDER REPORT
KARACHI: The Karachi share market closed bullish Thursday with KSE-100 index moving up by 487.58 points to close at 32,736.44 points compared to Wednesday’s 32,248.86 points.
After a dull start in the morning, the benchmark index turned positive and was once seen peaking to 32,759.95 points, the session high.
“Market participants remained largely bullish across the board,” viewed JS analyst Muhammad Mobeen.
The trading turnover increased from 226 million to, what analyst Samar Iqbal observed, one-month high level of 373 million shares compared to the month-to-date (MTD) average of 251 million shares.
The traded value also surged to Rs 16.5 billion from the previous day’s Rs 11.0 billion with 247 of the total 370 scrips traded appreciating, 97 depreciating and 26 closing unchanged. The market capitalisation rose to Rs 7.156 trillion against Rs 7.081 trillion of last trading session.
K-Electric, which rose to Rs 7.97 per share, led the day’s volume by counting 57 million of its listed stakes traded.
Those followed were Jahangir Siddiqui Company with 24 million, Bank of Punjab 23 million, Pak Elektron 22.6 million, Byco Petroleum 19 million, PIA 13.3 million, TRG Pakistan 13 million, Fauji Cement 11 million, Pakistan International Bulk Terminal 10.6 million and Engro Fertilizer 8.6 million shares. Trade on the futures market also remained upward and closed at 43 million contracts compared to 37.4 million of the previous session.
“Bullish activity was witnessed at KSE after surge in global commodities as dollar weakened,” commented Ahsan Mehanti of Arif Habib Corp.
Renewed foreign interest and IMF Fiscal Monitor 2015 report on forecast economic growth at 4.3pc and projected decline in net debt impacted the sentiments, he added. The bullish day, however, witnessed the foreign portfolio investment settling in the red zone marking $ 2.70 million net selling.
Trade, the analyst said, was led by leveraged second and third tier stocks on improving earnings outlook and hopes for SBP rate cut next month.
Samar said the investor sentiments were strengthened on the back of positives like the finance minister’s indication of a further discount rate-cut and Moody’s favourable statement about Pakistan’s credit rating after HBL sell-off.
Also, she said, the Supreme Court’s dismissal of government review petition against Gas Infrastructure Development Cess (GIDC) Wednesday helped cement and fertilizer stocks gain.
Sharp recovery in WTI and Brent Crude proved to be a trigger for the oil and gas sector that recovered strongly with HASCOL, PSO, PPL, OGDC and SHEL adding 5, 1.3, 3.9, 2.2 and 2.9 percent, respectively.
The undervalued, relatively, banking scripts also posted recoveries as HBL, UBL and FABL closed positive.
Mobeen foresees the upcoming result season as a likely trigger for the market where, the analyst says, positive results may help the cement and chemical scrips to post gains.
