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Karachi stocks rise 140 pts on fall in inflation for July

02 August, 2012

KARACHI: The Karachi stock market witnessed a bullish trading session on Wednesday due to lower-than-expected inflation number for the month of July, which propelled investors to go for stocks across-the-board.

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KARACHI: The Karachi stock market witnessed a bullish trading session on Wednesday due to lower-than-expected inflation number for the month of July, which propelled investors to go for stocks across-the-board.

The Karachi Stock Exchange (KSE) 100-share index gained 139.86 points or 0.96 percent to close at 14,716.86 points as compared to 14,577.00 points of the previous session. The KSE 30-share index was up by 104.89 points to close at 12,712.15 points as compared with 12,607.26 points.

“Stocks closed higher amid institutional interest in blue chips ahead of major earnings announcements after Pak-US accord signing on NATO supplies,” said Arif Habib Corporation Director Ahsan Mehanti. “Fall in consumer price index (CPI) for July 2012 to 9.6 percent, strong earnings outlook and hopes for release of $1.12 billion payment from US against services to coalition forces played a catalyst role in the bullish sentiment despite concerns over circular debt in the energy sector and power outages for the industrial sector.”

The market turnover went up by 34.73 percent and traded 104.81 million shares after opening at 77.79 million shares. The overall market capitalisation rose 0.93 percent and traded Rs 3.759 trillion as against Rs 3.724 trillion. Gainers outnumbered losers 157 to 97, while 25 stocks were unchanged.

“Lower-than-expected inflation numbers for July pushed the market to 50-month high to close at 14,716 points,” said Topline Sec equity dealer Samar Iqbal. “Cement stocks rallied as investors anticipated that decline in interest rates in the upcoming monetary policy will help cement companies high debt.”

The KMI 30-share index was up by 264.49 points to close at 25,386.01 points from its opening at 25,121.52 points. The KSE all-share index closed with a gain of 99.75 points to 10,364.33 points as against 10,264.58 points.

“Resumption of trade ties with the potential consumer of local cements and likely despatch of Coalition Support Fund (CSF) by the US kept the benchmark in the green zone,” said Escorts Securities Chief Operating Officer Hasnain Asghar Ali. “The entire cement sector displayed strength supported by hefty volume.”

Although resumption of healthy ties with US may besides leading to reimbursement of funds withheld, may provide support in improvement in trade quotas, with both US and Europe, it may also facilitate in yet another International Monetary Fund programme to smoothen the debt retirement process, he added.

Maple Leaf Cement was the volume leader in the share market with 17.92 million shares as it closed at Rs 7.33 after opening at Rs 6.36, gaining 97 paisas. Dera Ghazi Khan Cement traded 12.89 million shares as it closed at Rs 47.43 from its opening at Rs 46.21, rising Rs 1.22. Fauji Cement traded 9.13 million shares and closed at Rs 6.26 as compared to its opening at Rs 6.15, increasing 11 paisas.

End.


 
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