KSE gains 56 points on better Pak-US relations
23 October, 2012
KARACHI: The Karachi stock market closed in the bullish zone on the first trading day of the week Monday as improvement in Pak-US relations, renewed foreign interest and stronger earnings announcements led to accumulation in chips across-the-board.
The Karachi Stock Exchange (KSE) 100-share index gained 55.88 points or 0.35 percent to close at 15,848.63 points as compared to 15,792.75 points of the previous session. The KSE 30-share index was up by 26.37 points to close at 12,973.70 points as compared with 12,947.33 points of the previous session.
“Low-priced stocks like Karachi Electric Supply Company (KESC), Jahangir Siddiqui and Co Ltd (JSCL) and Azgard Nine Ltd (ANL) remained the center of attraction,” said Topline Sec dealer Samar Iqbal. “Engro Foods also saw high volatility with volume of 8.5 million shares. Fauji Fertilizer Company after September quarter's announcement declined by Rs 1.6.”
The market turnover fell 28.62 percent and traded 149.11 million shares after opening at 208.91 million shares. The overall market capitalisation went up by 0.48 percent and traded Rs 3.964 trillion as against Rs 3.945 trillion. Gainers outnumbered losers 175 to 133, while 18 stocks were unchanged.
“Stocks closed higher on improvement in macroeconomic situation after current account surplus stood at $432 million for the first quarter of the fiscal year,” said Arif Habib Investment Director Ahsan Mehanti. “Speculations ahead of major earnings announcements due this week and lower leverage cost played a catalyst role in the bullish sentiment at KSE despite concerns over circular debt issues in the energy sector.”
The KMI 30-share index was down 25.55 points to close at 27,766.57 points from its opening at 27,792.12 points. The KSE all-share index closed with a decline of 55.83 points to 11,148.72 points as against 11,092.89 points.
“The market continued to consolidate gains despite a short trading week due to Eid holidays and future rollover,” said Escorts Capital Chief Operating Officer Hasnain Asghar Ali. “Singled out frontline stocks witnessed offloading, value buying on dips besides keeping the volumes ticking restricted the index from losing ground.”
Banks and exploration and production stocks invited buyers on strength, while fertilizer stocks underwent negativity for consolidation, he said and added that although frontline stocks of the sector faced technical adjustment, relatively high volatility in cement stocks invited higher trading float, wherein huge float was exchanged on intra-day lows.
KESC was the volume leader in the share market with 19.79 million shares as it closed at Rs 6.25 after opening at Rs 5.53, gaining 72 paisas. JSCL traded 15.66 million shares as it closed at Rs 14.93 from its opening at Rs 14.29, rising 64 paisas. ANL traded 9.20 million shares and closed at Rs 6.78 as compared to its opening at Rs 6.73, increasing five paisas. Engro Foods Ltd traded 8.46 million shares as it closed at Rs 70.50 as against its opening at Rs 72.08, shedding Rs 1.58.