KARACHI – Bulls remained dominant on Friday at the Karachi Stock Exchange (KSE) where the benchmark index closed 57.03 points higher owing to, according to analysts, bullish activity in blue-chip scrips in energy sector.
The last trading day of the week saw the KSE-100 index closing at 11,905.87 against 11,848.84 a day earlier. “Bullish activity witnessed led by blue-chip scrips in oil sector after US Brent crude crossed $122 per barrel mark due to political turmoil in the Middle East and Libya,” said Ahsan Mehanti of Arif Habib Investments.
The day witnessed the intraday high and low, respectively, at 11,955.06 and 11,848.84, while turnover at the ready-counter was recorded at 68.08 million against 75.09 million on Thursday. Market capitalisation stood at Rs 3.173 trillion as compared to Rs 3.158 trillion a day earlier. Al-Habib Bank was the volume leader and saw its traded shares totaling 5.56 million each share pricing at Rs 30.49 to make a 0.8-paisa gain.
The futures market also remained sluggish and closed at 3.44 million against the previous 3.56 million, exhibiting a decline of 12 million shares over Thursday. Analysing the day’s trading, Mehanti said institutional and foreign interest continued at the Karachi bourse ahead of quarter-end earning announcements after Islamabad agreed to work with the US against militancy despite concerns for rising fiscal deficit and inflation in the country.
Another market observer, Husnain Asghar Ali of Aziz Fida Husien and Company, opined that “dividend yielding and growth stocks led the show” on Friday. “The beneficiaries of higher oil prices, oil and gas exploration and refinery stocks, initiated the long due bull-run, duly joined by fertiliser stocks, thus allowing the bench-mark to register triple digit gains,” he added.
The analyst said a low turnover and absence of follow-up, coupled with sell-off and profit booking on strength mainly in the high priced stocks, disallowed the momentum to continue with the same pace. “Thus pushing the benchmark in the consolidation phase, green however stayed the color of the day.”
He pointed out that although the oil exploration stocks had the tendency of offering a hedge against oil price-led inflation, the threat on the economy was seemingly higher than the gains offered by event to the beneficiaries, coupled with threats of tax-packed budget.
“(The) absence of financial groups providing volumetric support to the bourse disallowed an extended bull-run, POL, however, stayed exceptional,” Husnain said, adding that “The stock did witness renewed buying having a speculative color, thus allowing the stock to witness substantial increase in value, besides offering day trading opportunities, to the daring.”
LSE rises by 24 points
LAHORE – The Lahore Stock Exchange (LSE) was bullish with a low volume on Friday. The LSE 25-shares added 24.40 points to close at 3,345.37 against its opening at 3,320.97. Out of total 110 active scrips, 40 went up, 17 went down and 53 closed without any change in their opening values.
The volume of the market remained 1.84 million shares, which was 1.17 million shares less than Thursday’s turnover of 3.01 million shares. Bank Alfalah was the volume leader with 0.28 million shares turnover and it added Rs 0.09 to close at Rs 11.07 against its opening at Rs 10.98.
Pakistan Oil Fields was the major gainer and it added Rs 8.54 to close at Rs 331.13 against its opening at Rs 322.59. Services Industries with 100 shares turnover was the major loser and it lost Rs 8.29 to close at Rs 171 against its opening at Rs 179.29. Staff Report
