Market watch: Market rebounds as investors take positions

Wednesday, February 20th, 2013 8:00:26 by

KARACHI: After a slight correction on Tuesday, the market rebounded in the Wednesday session, closing deep in the black as increasing numbers of investors and institutions participated.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index closed at an all-time high in the earnings announcement session, after the sit-in ended in Quetta after negotiations with parliamentarians, said Ahsan Mehanti from Arif Habib Corp.

“With rising turnover, the market came close to the 18,000 points level due to continuous foreign buying,” reported Topline Securities equity dealer Samar Iqbal. “Volumes traded crossed Rs9 billion, with institutions and high net-worth individuals playing an active role.”

The KSE-100 index surged 0.73% or 129.36 points to end at the 17,947.07 points level. Trade volumes were flattish at 267 million shares compared with Tuesday’s tally of 266 million shares. The value of shares traded during the day was Rs9.27 billion.

“Mixed activity was seen at the bourse, where investors (institutions and individuals) preferred to switch between stocks, which kept the market alive throughout the day,” said JS Global analyst Fahad Ali.

“Engro Foods closed near its upper limit due to institutional buying,” added Iqbal. “Heavyweights Oil and Gas Development Company, Pakistan Petroleum and Pakistan Oilfields also witnessed an improvement in share price. Big cement companies like DG Khan Cement and Lucky Cement also rallied on expectations that profits will increase further in the current quarter.”

Shares of 380 companies were traded on Wednesday. At the end of the day, 171 stocks closed higher, 150 declined while 59 remained unchanged.

“Energy stocks with dividend yields and dollar-linked revenue streams dominated the index, led by Hub Power Company (up 3.01%), Kot Addu Power Company (up 1.63%) and Pak Gen Power (up 4.96%),” reported Haris Ahmed Batla, analyst at Elixir Securities.

Pakistan Telecommunication Company was the volume leader with 32.75 million shares, losing Rs0.14 to finish at Rs21.75. It was followed by NIB Bank with 24.17 million shares, losing Rs0.22 to close at Rs2.58; and Maple Leaf Cement with 16.51 million shares; gaining Rs0.09 to close at Rs17.68.

Foreign institutional investors were net buyers of Rs173.49 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, February 21st, 2013.

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