RECORDER REPORT
KARACHI: The Karachi share market Tuesday closed higher and the benchmark KSE-100 index gained 418 points to close at 33,203 points up from 32,785 points Monday
Commenting on the market, Ahsan Mehanti, an analyst at Arif Habib Corp said stocks closed bullish ahead of quarter-end earning announcements at KSE led by select scrips across-the-board.
“Renewed hopes for SBP policy rates revisions next month after record low CPI Inflation data for Sep 2015, global equities recovery, expected release of $375 million against US Coalition Support Fund and WTI crude prices rally above $46 per barrel played a catalyst role in the bullish close,” he added.
The market opened on a positive note and during the intraday trading, the index fluctuated in green zone touching intraday 33,237 points highest level. With 11 percent slight decline, daily trading volumes clocked in at 148.52 million shares compared to 166 million a day earlier. Market capitalization posted an increase of Rs 84.4 billion to reach Rs 7.107 trillion.
Trading value at the local bourse increased to Rs 8.53 billion on Tuesday against Rs 7.9 billion on Monday. Out of 392 active scrips, 234 advanced, 138 declined while the value of 20 scrips remained unchanged. Among top 10 active scrips, TRG Pak Ltd, Pak ElektronXD, Byco Petroleum, Silk Bank Ltd and Dawood Hercules were volume leaders with 12.76 million, 8.99 million, 8 million, 6.91 million and 6.8 million shares, respectively. Mohammad Rizwan Vice President Topline Securities said the stay order of Lahore High Court to stop NAB inquiry against a leading businessman swing investor mood to take fresh positions in the market.
“Monday’s news of extension of Altaf Hussain bail in London police station also gave a soothing affect to the market, resultantly, the market closed up by 1.27 percent and surpassed its 33,000 level to close at 33,203 points,” he added.
In addition, news related to increase in telecom subscribers helped investors to take positions in stocks such as PTC ,WTL and TELE which gained 1.28- 1.80 percent. PSO closed at its upper limit after the company disclosed in its analyst briefing that circular debt wasn’t piling up, he said.
Renewed interest was seen in index heavyweights, which included HBL up 2.87 percent, PPL 4.62 percent, OGDC 3.98 percent and UBL up 1.4 percent, respectively.
Analysts at JS said oil sector led the rally due to recovery in international oil prices, resultantly bulls dominated the market on second trading day. In oil sector, PSO (+4.86 percent) closed near its upper circuit due to rumours in the market of clearance of circular debt being a condition for next IMF tranche. They said a mixed sentiment was witnessed in the cement sector as dispatches decline by 4 percent MoM in Sep 2015. After Monday’s negative sentiment in fertilizer sector due to decline in international urea prices bringing pressure to local manufactures to cut down prices, the sector regained today as FATIMA, ENGRO and FFC closed up 0.78 percent, 2.07 percent and 0.55 percent, respectively.
Pak Tobacco and Ferozsons (Labs) were the top gainers with Rs 25.00 and Rs 20.74 to close at Rs 975.00 and Rs 814.73, respectively. Indus Dying and Sapphire Fiber were the top losers with Rs 60.43 and Rs 33.95 to close at Rs 1,148.24 and Rs 645.05, respectively.
