Oil & banking push KSE index to all-time high

KARACHI: Stock market continued to show exuberance at the final day of trading of the week, setting a new all time high record, pulled up by oil and banking sectors.

The Karachi Stock Exchange (KSE) benchmark 100-share index rose 46.78 points to 16,573.86 points on Friday, against the previous peak of 16,527.08 points on Thursday on high global stocks, dealers said.

Ahsan Mehanti, an analyst at Arif Habib Corp said index closed at high level led by oil and banking stocks amid speculations ahead of the SBP policy rate announcement next month.

Higher local cement prices, expectation for favorable revision in minimum deposit rate for commercial banks, and positive global stocks and commodities also stoked bullish sentiments.

“Despite concerns about lower cement dispatches and security situation in Karachi, the market went up due to the suggestions of the Economic Coordination Committee (ECC) about reduction of sales tax and gas development surcharge (GDS),” he said.

The KSE-100 index reached to a high level of 16,651.79 points during the intraday session, while low level of the day was recorded at 16,527.08 points. KSE-30 index was up by 40.60 points or 0.30 percent to 13,421.81 points in the session.

Along with the index, turnover and value also increased in the session. Turnover shot up by 57 million shares to 312.25 million shares, whereas value increased to Rs6.74 billion from Rs6.56 billion.

Talking to The News, Hasnain Asghar Ali, COO Escorts Capital, said interest was witnessed in bank buying, as their annual financial results were about to come and there was a likelihood of substantial payouts.

“Book value of the banks is also good and their returns are high,” he said and added fertilizer sector witnessed mix trend, though it would show resilience in the next rally,” he said.

Samar Iqbal, an equity dealer at Topline Securities (Pvt) Ltd., said healthy volumes were registered but remained confined towards mid cap stock like Fauji Cement (FCCL) of which alone 89 million shares were traded.

“Interest of investors also remained in the banking stocks with National Bank closed at its upper limit with healthy volumes of 12 million shares,” she said.

Highest increase was recorded in shares of Bata (Pak), which surged by Rs82 to Rs1,722 per share followed by Wyeth Pak Limited, which was up by Rs44.50 to Rs934.50 per share. Major decline was registered in shares of Unilever Pak that fell by Rs534.71 to Rs10,159.54 per share followed by Nestle Pakistan Ltd that declined by Rs245 to Rs4,655 per share.

Stocks that recorded significant turnover included Fauji Cement, Jahangir Siddiqui Co, KESC, National Bank Pak, Bank Islami Pakistan and DGK Cement.

Fauji Cement was the volume leader with 89.16 million shares with increase of 11 paisa to Rs6.95 per share. It was followed by Jahangir Siddiqui Co with 27.70 million shares with increase of 58 paisa to Rs17.23 per share.

Shares turnover in the future market dropped to 26.79 million shares from 28.43 million shares traded in the previous session.

Of the total of 364 scrips, 150 advanced, 188 declined and 26 remained unchanged.

Bata Pak Rs82.00

Closing Rs1,722.00

Wyeth Pak Rs44.50

Closing Rs934.50

Sanofi Aventis Rs17.43

Closing Rs366.03

Unilever Pak Rs534.71

Closing Rs10,159.54

Nestle Pak Rs245.00

Closing Rs4,655.00

Unilever Food Rs220.00

Closing Rs4,190.00

Posted in: Business news