KSE gains 96.46 points on talks with IMF

KARACHI: Karachi Stock Exchange’s (KSE) benchmark 100-index witnessed an increase of 96.46 points on Wednesday to reach 16,742 points on account of positive talks with the International Monetary Fund (IMF) and calmness on the political front, said dealers.

Ahsan Mehanti, an analyst at Arif Habib Corp, said that stocks closed higher as hopes rise over positive talks with the IMF on macroeconomic assessment.

The government’s assurance for timely elections in the country, expansion plans by PPL, Nishat Group and hopes for easing political uncertainty affected the market sentiments. “Rising cement sales data, expectations for stronger earnings announcements in oil, cement and textile stocks and higher global commodities played a catalyst role in the bullish sentiments at the KSE,” he said.

The KSE-100 index surged by 96.46 points or 0.58 percent to 16,742.22 points against 16,645.76 points recorded in the last session. The high index of the day remained slightly higher than the day’s close index at 16,746.09 points, while low index remained capped at 16,645.76 points. The KSE-30 index improved by 94.89 points or 0.70 percent to 13,696.41 points in the session.

Along with the index, both turnover and value increased in the market. The turnover improved by four million shares to 90.99 million shares from 86.78 million shares, whereas the value increased to Rs3.07 billion against Rs2.68 billion recorded in the last session.

Hasnain Asghar Ali, COO of Escorts Capital, said that value buying led by cement stocks along with singled out stocks from almost all the sectors kept panic away, thereby keeping the benchmark on gaining ground.

While the ongoing debate regarding the fall out of the planned long march continues to restrict trading volumes, earning sensation and expectations for a smooth way out kept the inflow of funds persistent in selective stocks that allowed the index to smoothly breach and sustain overhead resistance levels, he added.

Fahad Ali, an analyst at JS Research, said that the market sustained a positive momentum after correcting itself on uncertain political situation prevailing in the country due to the long march threat as well as some political parties trying to strike a drone (political one) in the country.

Foreign investments continued to flow in different sectors as investors targeted stocks with cheap valuations and high yields. “We expect the market to be volatile during the next few days and one should build positions at dips in fertiliser, banking and cement sectors,” he said.

The highest increase was recorded in the shares of Unilever Pak, which increased by Rs80.77 to Rs10,080.77 per share followed by Attock Petroleum Ltd, which rose by Rs5.80 to Rs511.55 per share. Major decline was noted in the shares of Pak Int Cont SD, which fell by Rs9.91 to Rs205.28 per share, followed by Abbott Lab that declined by Rs9.35 to Rs203.67 per share.

Stocks that recorded significant turnover included Maple Leaf Cement, Askari Bank, Jahangir Siddiqui Co, Byco Petroleum and TRG Pakistan Ltd. Maple Leaf Cement was the volume leader with 14.51 million shares with an increase of 26 paisas to Rs15.76 per share; followed by Askari Bank with 12.43 million shares with an improvement of 1 paisa to Rs18.85 per share.

Shares turnover in the futures market improved to 5.11 million shares from 4.07 million shares traded in the previous session. Of a total of 319 companies’ stocks traded, 165 advanced, 128 declined and 26 remained unchanged.

Unilever Pak Rs80.77

Closing Rs10,080.77

Attock Petroleum Rs5.80

Closing Rs511.55

Gillette Pak Rs4.87

Closing Rs102.42

Pak Int Cont Rs9.91

Closing Rs205.28

Abbott Lab Rs9.35

Closing Rs203.67

Al-Ghazi Trctor Rs9.18

Closing Rs233.18

Posted in: Business news