KSE index up by 84 points on buying in telecom, cement stocks

KHARACHI ( MEDIA)

The Karachi Stock Exchange benchmark 100-index continued upward rally for the third consecutive day on Friday, crossing the psychological barrier of 26,000 points and increased by 84.53 points to a fresh all-time high of 26,046.71 points on buying in telecom and cement stocks, analysts say.

Zafar Moti, an analyst and a senior member of the KSE, said that the market performed well across-the-board and the market fundamentals remained strong.

“Nuclear energy agreement for $6.5 billion project boosted the sentiment along with narrowing down of the rupee-dollar parity,” he said.

“Especially, the upcoming results of the second quarter of the fiscal year are likely to remain stronger that invited investors’ interest in the market.”

The KSE-100 index closed higher by 84.53 points, or 0.33 percent, to close at 26,046.71 points against 25,962.18 points recorded in the last session. The highest index of the day was recorded at 26,136.28 points, while the lowest level of the day was recorded at 25,962.18 points.

The KSE-30 index also increased by 33.05 points, or 0.17 percent, to close at 19,355.40 points in the session against 19,322.35 points recorded in the last session.

Turnover; however, declined by 110 million shares to 277.98 million from 387.23 million shares. Trading value dropped to Rs9.81 billion against Rs12.34 billion, while market capitalisation improved to Rs6.25 trillion against Rs6.22 trillion recorded in the last session.

Of a total of 397 active companies in the session, 181 ended in the positive territory, 194 in the negative zone, while 22 companies remained unchanged.

Asad Siddiqui, a senior manager research at Topline Securities (Pvt) Ltd, said mainly led by sufficient liquidity available in the system, the ongoing positivity continued during the third day; however, the velocity remained subdued as the index gained 85 points and in the process broke the psychological barrier of 26,000 points level.

“Another positive point for the market is renewed interest coming in from retail investors from the last couple of sessions,” he said. “Buying interest in Pakistan Telecommunication Company Limited and DG Khan Cement was seen as they saw volume of 12.6 million and 12.3 million shares, respectively.”

Besides, positivity in the Oil and Gas Development Company Limited was witnessed, which further supported the index, contributing approximately 21 points.

Highest increase was recorded in the shares of Nestle Pakistan, which rose by Rs275 to Rs8,475 per share; followed by Bata (Pakistan) that improved by Rs41.32 to Rs3,120 per share. Major decline was witnessed in the shares of Wyeth Pakistan Ltd, which fell by Rs60 to Rs4,500 per share; followed by Mitchell’s Fruit that declined by Rs24.93 to Rs725.51 per share.

Significant turnover was recorded in the stocks of TRG Pakistan Ltd, Pakistan Telecommunication Company Limited, DG Khan Cement, Telecard Limited, Bank of Punjab, Jahangir Siddiqui Co, Fauji Cement, NIB Bank Limited, BRR Guardian and Pakistan International Airlines.

TRG Pakistan Ltd remained the volume leader with 21.65 million shares on an increase of 96 paisas to close at Rs10.13 per share; followed by PTCL with 12.56 million shares on an increase of 42 paisas to close at Rs30.15 per share.

Shares turnover in the futures market fell to 23.40 million from 29.31 million shares traded in the previous session.

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