KARACHI: The benchmark index of the Karachi Stock Exchange (KSE) is poised to hit the 12,000 points mark in coming weeks due of the sustained inflow of foreign investment, expectation of strong results to be posted by banks, fertiliser companies and the launching of the GDRs of large public entities.
Foreign investors have injected around $21 million in the Karachi Stock Exchange in last three days that was one of the few important indicators of further growth in the stock market, Ahmed Nabil, Chief Investment Adviser of the Pak-Oman Asset Management Company, told Pakistan Today on Monday. The banks and fertiliser companies listed at the stock market are expected to earn a good profit in 2010; the positive reports of the strong financial earnings will hopefully sustain market vibrancy, he said.
In next few days, government officials are going abroad to promote the Global Depository Receipts (GDRs) of several large companies like Pakistan Petroleum Limited (PPL), Oil and Gas Development Company (ODGC), gas companies and other entities and this would also be a key factor behind the gradual surge in the value of equities at the stock market, Nabil added. He was confident that the equity funds would also perform strongly.
He opined that in January 2011 the KSE-100 index may very well be hovering around 12,000 points, from the current level of 11,440 points on Monday.
The Karachi stock exchange edged up further, amid the active participation of foreign investors on Monday.
The KSE-100 index gained 33.41 points and closed at 11,440 points. A total of 396 companies’ shares were traded at KSE out of which the value of 175 companies’ shares improved, 196 lost while the rates of 25 companies remained unchanged.
The trading volume at the stock market stood at 170.50 million and the value of the shares traded on Monday amounted to Rs 5.406 billion.
Capital market analysts said the foreign buying sustained the benchmark index as the banks, MCB, UBL and NBP and OGDC in the oil and gas sector were eagerly sought out by foreign fund managers.
The SBP’s decision to allow individuals to invest in T-bills and PIBs is likely to steal thunder from the local bourse. It is expected that the tendency of local investors should be to book profits and move away.
In the absence of foreign purchases in the last three sessions, the KSE-100 index would have become victim to profit booking by domestic market participants but foreigners have taken the market in a different direction.
The benchmark index surged upwards to peak at the 11,486 level in today’s trading session but correction stole some points from the KSE-100 index as it closed at 11,440level, up merely 33 points.
The active interest of foreign buyers has inculcated caution on the part of domestic investors.
Dawan Salman emerged the volume leader with a turnover of 26.284 million shares. Lotte Pakistan PTA was the second volume leader with turnover of 12.99 million shares.
Nishat Power traded 11.318 million shares, 9.502 million shares of National Bank of Pakistan changed hands while the fifth volume leader was TRG Pakistan as its 8.359 million shares were traded on Monday.
LSE gains 35.44 points: The Lahore stock Exchange (LSE) remained bullish with a slight decline in the volume on Monday. The LSE 25-shares index gained 35.44 points to close at 3,604.28 against its opening at 3,568.84 levels.
Volume of the market remained 8.76 million shares, which was 0.31 million shares less than Friday’s turnover of 9.07 million shares. Out of 121 active scrips, 35 went up, 29 declined and 57 showed no change in their opening values.
Dewan Salman Fibre, with a turnover of 3.08 million shares, was the volume leader and it added Rs 0.54 to close at Rs 2.76 against its opening at Rs 2.22. Lotte Pakistan PTA, with a turnover of 0.96 million shares, was the second volume leader but it lost Rs 0.06 to close at Rs 12.77 against its opening at Rs 12.83.
MCB was the major gainer and gained Rs 9.71 to close at Rs 217.70 against its opening at Rs 207.99. UBL followed suit as it gained Rs 1.40 to close at Rs 63.27 against its opening at Rs 61.87. Attock Refinery was the major loser as it declined Rs 5.24 to close at Rs 118.12 against its opening at Rs 123.36. Treet Corporation declined Rs 2.96 to close at Rs 56.26 against its opening at Rs 59.22.
