Karachi stock exchange-News and discussioms

[Cyberian]

KSE most favourite market in region
Thursday, June 06, 2013

Staff Report

KARACHI: Even after a blockbuster return of 49 percent in 2012 and a year to date return of 32 percent in 2013, the Karachi Stock Exchange (KSE) 100-share index still continues to remain the cheapest on price earnings (PE), price-to-book (PB) and dividend yield basis regionally, analysts said on Wednesday.

Global Securities Limited’s Sana Abdullah said in contrast to regional markets, Pakistan comes off as even more attractive in terms of dividend yield, as forward dividend yield on the index at 5.0 percent tops all regional peers by a margin of 200 basis points (bps). The KSE 100-share index does not appear to be overvalued by any means yet has the PE discount to regional peers at 44 percent, which is still a good 14 percent higher compared to historic average of 30 percent, Ms Abdullah added.

Trading activity has picked up significantly at the bourse too, as average daily volumes have depicted a surge to an average 340 million shares during May 2013 as compared to 200 million shares pre-election, which is also another positive sign, she said.

Ms Abdullah further said, “Exploration and production, and Independent Power Producers (IPPs) remain the top sector picks based on the premise that it’s feared the rupee might depreciate by 5.0 percent on yearly basis in financial year 2013-14, on the back of vulnerable balance of payments position and the pending International Monetary Fund (IMF) repayments.”

The dollar denominated revenues for the oil exploration companies and fixed dollar-based ROEs of the IPPs make them the favoured investment choice, she added. In addition, export-oriented sectors that include textile and cement are also the favoured sector picks. Hubco, Pakistan Petroleum Limited (PPL), Lucky Cement and MCB Bank have provided a year to date return of 39 percent, 25 percent, 25 percent and 49 percent, respectively.


Country-wise data

Country
Pakistan	8.7	1.8	5%​
Vietnam	10.7	1.9	3%​
Sri Lanka	13.3	1.9	3%​
Thailand	15.2	2.5	3%​
Phillipines	17.3	3.0	2%​
Indonesia	17.4	3.1	2%​
India	18.4	2.6	2%​
Taiwan	18.9	1.7	3%​
South Korea	20.9	1.1	1%​
Average	15.6	2.1	3%​

[td]PE[/td] [td]PB[/td] [td]Dividend Yield [/td]

Daily Times - Leading News Resource of Pakistan

 

[A.Rafay]

KSE smashes all previous records, gains 16 percent

* 100-share index increases by 3,000 points in May 2013 alone

By Tanveer Sher

KARACHI: The Karachi stock market gained a massive 15.93 percent or 3,000.20 points in a month due to holding of general election on time, which seemed dubious, hopes for end to crippling power crisis, improvement in ties with India and lower inflation.

The Karachi Stock Exchange (KSE) 100-share index gained 3,000.20 points or 15.93 percent to close at 21,823.05 points on May 31, 2013 as against 18,822.85 points on April 30, 2013.

Analysts said the other major reason behind this phenomenal growth in the 100-share index is the formation of the new strong government in the Central and the province of Punjab both by a single party, Pakistan Muslim League-Nawaz. The government with its strong majority is expected to alleviate poverty in the country and make the tough yet important decision to resolve the energy crisis and handle the worst law and order situation in the country.

After the ambiguity regarding elections cleared, the market took a U-turn, touching new highs post-election. The 100-share index posted a massive growth of 1,908 points or 9.6 percent since the day of election.

The monthly turnover increased by a huge 311.53 percent or 489.48 million shares to 646.60 million shares as against 157.12 million shares.

Invest Capital Securities' Abdul Azeem in his analysis said a significant escalation was witnessed at the market during May 2013; such boost can be attributed to the conduction of election on time which seemed dubious at the time. The significant surge in foreign investment in the stock market also played a vital role during the month, reaching $271 million (including $114 million payment of Unilever) as against $28 million during April 2013 as foreign investors showed more trust in the new government.

On the regional front, the KSE outperformed the regional markets, registering an enormous growth of 16.5 percent on monthly basis in dollar terms during May 2013. Moreover, Pakistan equities performed better than the Frontier Markets Asia Index, which rose by 11.76 percent on monthly basis in May 2013. Moreover, the 100-share index being listed at the Frontier Market Index, outperformed by 12 percent on monthly basis as compared to Frontier Market Index growth of 4.47 percent. As far as regional foreign investment is concerned, India remained the leader on this front as it was able to attract $3.86 billion during May 2013. Likewise, Taiwan ranked second as $2.2 billion was invested in Taiwan's stock markets during the period. Pakistani markets attracted only $271 million during the said period.

Going forward, the analyst predicted the positive rally at the market to continue during June 2013. Although, the budget for fiscal year 2013-14 is to be announced in June but the newly elected government is expected to maintain status quo on tax front in the upcoming budget.

TOP 10 COMPANIES

SYMBOL TURNOVER

FCCL 550,466,000

BOPR 449,652,000

PTC 295,325,000

TRG 280,410,000

BOP 259,717,500

DCL 257,705,500

MLCF 232,723,000

JSCL 217,210,500

LOTCHEM 212,925,000

LPCL 192,061,500

Daily Times - Leading News Resource of Pakistan

 

[Cyberian]

KSE rebounds 184 pts on hopes for fresh IMF loan
Friday, June 07, 2013

Staff Report

KARACHI: The Karachi stock market rebounded on Thursday as hopes that the new government would approach the International Monetary Fund (IMF) for a fresh bailout package to deal with economic crisis forced investors to take positions.

The Karachi Stock Exchange (KSE) 100-share index gained 184.28 points or 0.83 percent to close at 22,276.70 points as compared to 22,092.42 points of the previous session. The KSE 30-share index was up by 197.79 points to close at 17, 329.88 points as compared with 17,132.09 points.

“Stocks closed bullish led by second-tier stocks on strong valuations,” said Arif Habib Corporation Director Ahsan Mehanti. “Renewed foreign interest in banks and oil stocks, hopes for post-budget IMF bailout package option to deal with economic issues impacted the sentiments in the pre-budget rally at KSE.”

Trade remained high amid institutional support in an oversold market, he said and added that recovery in global commodities played a catalyst role in bullish sentiment at KSE despite strike observed to mourn killings of a political party’s workers in the city.

The market turnover went down by 30.39 percent and traded 462.64 million shares as against 664.67 million shares of the previous session. The overall market capitalisation gained 0.59 percent and traded Rs 5.381 trillion as against Rs 5.349 trillion. Gainers beat losers 202 to 166, while 19 stocks were unchanged.

“Equities staged a comeback after yesterday’s decline on back of foreign interest as locals continued to be sellers,” said Elixir Securities analyst Muhammad Sibtain Mustafa. “The driver emerged from banking sector as MCB Bank drove to its upper lock to close at an all-time high.”

Albeit, oil sector continued to show volatility with POL testing its yesterday’s lows but soon to recover lost grounds as broader momentum welcomed buyers. Overall, second-tier stocks continued to dominate the volume with day traders’ activity at recent highs.

The KMI 30-share index gained 90.12 points to close at 37,927.41 points from its opening at 37,837.29 points. The KSE all-share index closed by gaining 92.70 points to 15,619.68 points as compared to 15,526.98 points of the previous session.

“In today’s trading session the 100-share index slipped below the 22,000 points level and bounced back aggressively to add nearly 356 points to register a close of 22,277 points with hefty volumes,” said Habib Metropolitan Finance Corporation analyst Bilal Asif. “Bank of Punjab (BoP) aloes generated around 23 percent of the total market volumes while the stock lost its upward trajectory.” Low-cap stocks continued to rule the volume leaders board where PIA, Pace and Lotte Chemical were among the actively traded stocks, he added.

BoP (R) was the volume leader in the share market with 60.55 million shares as it closed at Rs 4.96 after opening at Rs 5.73, shedding 77 paisas. BoP traded 47.01 million shares as it closed at Rs 14.90 from its opening at Rs 15.87, losing 97 paisas. Pace (Pak) Ltd traded 25.43 million shares and closed at Rs 5.52 as compared to its opening at Rs 5.34, gaining 18 paisas. Lotte Chemical traded 25.33 million shares as it closed at Rs 8.76 against its opening at Rs 8.32, increasing 44 paisas

Daily Times - Leading News Resource of Pakistan

 

[Cyberian]

KSE closes week with a gain of 82 points
Saturday, June 08, 2013

Staff Report

KARACHI: The Karachi stock market closed the last trading day of the week Friday on a positive note as the Prime Minister Nawaz Sharif’s vow to take effective measures to rid the country of crippling energy crisis propelled investors to go for buying.

The Karachi Stock Exchange (KSE) 100-share index gained 82.26 points or 0.37 percent to close at 22,358.96 points as compared to 22,276.70 points of the previous session. The KSE 30-share index was up by 91.99 points to close at 17,421.87 points as compared with 17,329.88 points.

“Stocks bullish amid thin trade led by banks on strong valuations,” said Arif Habib Corp Director Ahsan Mehanti. “Renewed foreign interest, hopes for easing circular debt concerns in energy sector and recovery in global commodities played a catalyst role in the bullish trend in the pre-budget rally at KSE.”

The market turnover went down by 26.46 percent and traded 340.24 million shares as against 462.64 million shares of the previous session. The overall market capitalisation gained 0.16 percent and traded Rs 5.390 trillion as against Rs 5.381 trillion. Gainers outnumbered losers 195 to 168, while 10 stocks were unchanged.

“The market continued to tread into the green driven by Mansha Group stocks,” said JS Research analyst Ovais Ahsan. “MCB Bank and Nishat Mills Ltd added the most points to the index.”

Engro Corp and Dawood Hercules led the decline in the fertilizer sector driven down by news of gas supply to Sui Northern Gas Pipelines-based plants being shut off. Fatima Fertilizer bucked the decline in the sector as large selling from a local institution finally exhausted. Lotte Chemical jumped on a hike in primary margins and speculation that PTA import duty could be raised in the near future.

The KMI 30-share index shed 27.02 points to close at 37,900.39 points from its opening at 37,927.41 points. The KSE all-share index closed by gaining 27.01 points to 15,646.69 points as compared to 15,619.68 points of the previous session.

“Volumes were yet again led by second-tier stocks with Lotte Chemical leading the chart and gaining on expectations that coming budget will likely bring a positive surprise for this PTA maker,” said Elixir Securities analyst Faisal Bilwani. “Foreign inflows are to remain key in setting future direction of the market.”

Lotte Chemical was the volume leader in the share market with 23.77 million shares as it closed at Rs 8.89 after opening at Rs 8.76, gaining 13 paisas. Fatima Fertilizer traded 23.34 million shares as it closed at Rs 26.06 from its opening at Rs 25.33, increasing 73 paisas. Bank of Punjab (R) traded 22.27 million shares and closed at Rs 4.89 as compared to its opening at Rs 4.96, shedding seven paisas. PTCL traded 18.41 million shares as it closed at Rs 22.52 against its opening at Rs 22.53, declining one paisa.

Daily Times - Leading News Resource of Pakistan

 

[That Guy]

More good news.

It seems investors are really supportive of Nawaz and trust his business sense. It remains to be seen though, if he will actually pull the economy out of this recession.

 

[Cyberian]

Foreign buying at bourse enhances to $29 million
Sunday, June 09, 2013

ISLAMABAD: The foreign investors portfolio investment (FIPI) has registered an increase of $28.99 million in local stock market during a week as compared to previous week’s closing.

According to National Clearing Company of Pakistan Limited (NCCPL), of total five-day buying, foreign investors had taken the positions worth of $1.35 million on first day of week (Monday).

On the 2nd day of trading session (Tuesday), the investors invested an amount of $8.69 million in the local stock market.

In the same way on Wednesday, the foreign investors invested an amount of $9.31. Similarly the investors made the foreign buying of $7.68 million on 4th day of trading session of market. On the last day (Friday) of session, the foreign investors took the positions worth $1.94 million. app

Daily Times - Leading News Resource of Pakistan

 

[Cyberian]

Stocks gain 58 pts on renewed foreign interest
Wednesday, June 12, 2013

Staff Report

KARACHI: Karachi stock market closed higher in the pre-budget rally on Tuesday on support of higher Public Sector Development Programmes (PSDP) commitment expected in federal budget 2013-14.

Renewed foreign interest, hopes for easing circular debt concerns in energy sector and speculations on higher local urea prices on gas shortages on Sui Northern Gas Pipelines Limited network played a catalyst role in bullish sentiments.

The Karachi Stock Exchange (KSE) 100-share index gained 58.33 points or 0.26 percent to close at 22,209.07 points as compared to 22,150.74 points of the previous session. The KSE 30-share index was up by 45.79 points to close at 17,281.03 points as compared with 17,235.24 points.

The market turnover went down by 3.15 percent and traded 268.30 million shares as against 277.03 million shares of the previous session. The overall market capitalisation surged by 0.69 percent and traded Rs 5.376 trillion as against Rs 5.339 trillion. Gainers beat losers by 219 to 147 while 24 were unchanged.

The KMI 30-share index shed 10.65 points to close at 37, 578.41 points from its opening at 37,589.06 points. The KSE all-share index closed by gaining 107.72 points to close at 15, 629.34 points as compared to 15,521.62 points of the previous session.
Pakistan stocks closed higher in the pre-budget rally amid thin trade on cautious activity led by blue chip oil, banking and cement stocks on strong valuations, said Ahsan Mehanti Director Arif Habib Corp.

Equities opened on a positive note as interest in banking stocks led the rebound with KSE 100 index managing a close above 22,200. United Bank UBL PA +5.0 percent was the first to trade at upper circuit levels on reported institutional and foreign buying and led other banking stocks into green along with churning sizeable volumes. News of 50 percent increase in development expenditure in upcoming budget (due tomorrow) brought cement stocks back in limelight and pushed Lucky Cement (LUCK) PA up +2.2 percent. Activity in the broader market was however slow with investors cautious, given the budget presentation which is due tomorrow.

Nawaz government will be announcing its first budget today (June 12) and will set the tone for both equities and the broader economy. High expectations are attached from this government, especially with the policies that it will layout for economic repair, stability and prosperity with key focus on energy and taxation.

Expect market to cherish any positive developments in this regard while any negative surprise mainly on taxation front can turn the mood sour in the short term, said Raza Rawjani analyst at Elixir Securities Pakistan.

KSE 100 index with low volumes traded in the positive zone today. However the blue chips closed on negative ground. Index made high of 22297.30 points and closed at 22209.07 +58.33 points positive. The volume in KSE All shares index was 268 million. The volume leader today was BOPR with total volume of 68.7 million shares. Highest boost in prices were noticed in Nestle, Bata, MFFL and highest price fall was seen UPFL, ILTM and PSEL.

The commercial bank sector continued leading the market with highest volumes and following it was cement sector. A day left in budget slowed down the market activity. Market is expected to continue the same trend after budget, said Sania Zulfiqar analyst at M M Securities.

E-100 closed up 0.3 percent with volumes of 268 million shares traded. The cement sector remained in the limelight owing to higher PSDP funds allocation. Overall activity was witnessed on weak levels with PIAA (+10%), BOP (-1.8%), MLCF (-0.3%) being volume leaders.

Bank of Punjab was the volume leader in the share market with 68.76 million shares as it closed at Rs 3.25 after opening at Rs 4.17 shedding 92 paisas. PIAC (A) traded 21.06 million shares as it closed at Rs 10.61 from its opening at Rs 9.61 gaining Rs 1.00. Bank of Punjab traded 13.02 million shares and closed at Rs 13.81 as compared to its opening at Rs 14.07 shedding 26 paisas. Maple Leaf Cement traded 10.57 million shares as it closed at Rs 23.18 against its opening at Rs 23.24 shedding 06 paisas.

Daily Times - Leading News Resource of Pakistan

 

[Cyberian]

KSE welcomes budget with a gain of 433 points
Friday, June 14, 2013

Staff Report

KARACHI: The Karachi stock market closed at an all-time high in the post-budget rally on Thursday after Federal Finance Minister Ishaq Dar unveiled over Rs 3.5 trillion federal budget 2013-14 with Public Sector Development Programme (PSDP) of Rs 1.15 trillion, which is up by 32 percent as compared with previous budget’s Rs 873 billion.

Analyst said traders saw no demons in the budget document and the finance minister’s categorical pronouncement to resolve the circular debt in 60 days propelled the buying spree.

The Karachi Stock Exchange (KSE) 100-share index gained 433.15 points or 1.94 percent to close at 22,757.72 points as compared to 22,324.57 points of the previous session. The KSE 30-share index was up by 390.61 points to close at 17,787.71 points as compared with 17,397.10 points.

“Stocks closed at an all-time high in the post-budget rally after the government unveiled over Rs 3.5 trillion Federal Budget 2013-14 with PSDP of Rs 1.15 trillion,” said Arif Habib Corp Director Ahsan Mehanti. “Bullish rally was led by stocks across-the-board after corporate tax cut by 1.0 percent to 30 percent in the next five years.”

Plans unveiled to settle circular debt in 60 days, 3G licences auction in July and fiscal deficit target for 6.3 percent of gross domestic product played a catalyst role in the bullish sentiment despite concerns over dismal economic data.

The market turnover went up by 33.61 percent and traded 470.93 million shares as against 352.44 million shares of the previous session. The overall market capitalisation surged 1.84 percent and traded Rs 5.511 trillion as against Rs 5.411 trillion. Gainers outnumbered losers 232 to 133, while 28 stocks were unchanged.

“The market witnessed a grand post-budget rally driven by index heavyweights OGDC and MCB Bank,” said JS Research analyst Ovais Ahsan. “Pakistan State Oil (PSO) and Hubco gained as energy chain companies rallied.”

Record public sector development spending allocated in the budget and the announcement of new housing scheme pushed the cement sector with Lucky Cement, DGKC and Fauji Cement hitting upper circuit breakers.

The KMI 30-share index gained 800.32 points to close at 38,747.31 points from its opening at 37,946.99 points. The KSE all-share index closed with a gain of 289.54 points to 16,020.93 points as compared to 15,731.39 points of the previous session.

“PSO led the charge hitting upper price limit followed by sharp gains in index heavyweight OGDC,” said Elixir Securities analyst Jawwad Aboobakar. “Power makers also were in the limelight as any relief to energy sector debt will significantly improve cash flows.”

Bank of Punjab (R) was the volume leader in the share market with 66.31 million shares as it closed at Rs 3.44 after opening at Rs 2.65, gaining 79 paisas. Fauji Cement traded 52.73 million shares as it closed at Rs 12.78 from its opening at Rs 11.78, rising Re 1. PTCL traded 35.11 million shares and closed at Rs 23.50 as compared to its opening at Rs 22.47, increasing Rs 1.03. WorldCall Telecom traded 21.36 million shares as it closed at Rs 3.57 against its opening at Rs 3.48, appreciating nine paisas.

Daily Times - Leading News Resource of Pakistan

 

[Devil Soul]

KSE gains another 211 points on lower CPI

July 06, 2013 Our Staff Reporter
KARACHI - Market continued its upward trend after reentering into IMF programme. Interest in oil sector, IPPs and PTC helped market to close above 22,000 points mark.
The Karachi stock market continued its extension on last day of trading week, benchmark KSE-100 share index posted a fresh gain of 211.38 points or 0.96 percent to end the day at 22178.18 points compared to 21966.96 points of the previous day. Dealers said major activity was seen in mid cap stocks as KESC alone witnessed 70m shares while PTC closed at its upper cap with 25m shares exchanged hands.
KSE-Allshare index increased by 138.40 points or 0.89 percent to close the day at 15684.18 points, KSE-30 share index grew by 145.91 points or 0.86 percent to stop the day at 17144.06 points while KMI-30 share index added 433.93 points or 1.13 percent to conclude the trading session at 38958.63 points. Analyst Ahsan Mehanti said rally was led by oil, energy and banking stocks on rising global commodities amid hopes for energy deals, investment and improved bilateral relations with China.
Higher cement sales annual data, foreign interest in blue chip stocks and speculations on early resolutions of circular debt issues in energy sector played a catalyst role in bullish activity in the earnings announcement session at KSE.
Participation of 354 companies were witnessed during the trading where gainers outnumbered the losers 221 to 116 while the value of 17 stocks remained unchanged. Bata (Pak) was the top gainer of the day up by Rs 84 to Rs 1784 followed by Unilever Food increased by Rs 50 to Rs 4750. Down hill trend were led by Nestle Pakistan and Colgate Palmolive down by Rs 90 to Rs 6300 and Rs 44 to Rs 1855.
Turnover of shares was reached to 355.653 million compared to 318.416 million shares of the last day. Value of traded shares reduced to Rs 8.945 billion from Rs 11.085 billion while the capitalisation of local equity market maintained at Rs 5.394 trillion after opening at Rs 5.346 trillion.
Active list was topped by KESC with 70.372 million shares as it closed at Rs 7.90 after opening at Rs 7.09. It was followed by PTCLA with 25.132 million shares up by Rs 1.17 to Rs 25.07.
It was followed by IGI Inv. Bank with 16.943 million shares higher by Re 0.71 to Rs 2.63, Media Times Limited with 16.751 million shares up by Re 0.22 to Rs 4.71 and National Bank with 14.043 million shares extended by Rs 1.47 t o Rs 45.44.
In a weekly review equity dealer Samar Iqbal said market gained 5.6pc in the first week of new fiscal year. Lower than expected CPI for June, reentering into IMF programme and increasing relationship with neighbouring countries helped market to recover over 1,000 in a 5 straight day rally. Further, release of pending $800m from Etisalat and increase in international equity and commodity market were also the key highlights of the week.
Going forward expected announcement of energy policy and regional market performance will impact market sentiment in coming week.
KSE gains another 211 points on lower CPI

 

[Devil Soul]

KSE adds 187 points on Moody’s rating news

July 09, 2013 Our Staff Reporter
KARACHI - Positive statement by rating agency Moody’s helped index to post gain of approximately 1pc.
At local equity market benchmark KSE-100 share index added 187.38 points or 0.84 percent to close the day at 22365.72 points compared to 22178.34 points of the last working day on Friday.
Equity dealers said institutional buying in Engro Corporation and PTC led the index as both the stocks closed at upper limit. Lafarge Pakistan Cement with a volume of 32m shares rallied in expectation for better profit for the last year.
KSE-Allshare index grew by 101.26 points or 0.65 percent to end the day at 15785.44 points, KSE-30 share index extended by 162.61 points or 0.95 percent to close the day at 17306.67 points while KMI-30 share index added 529.98 points or 1.38 percent to conclude the session at 39488.61 points.
Market traded 325.649 million shares after opening at 355.653 million shares and the value of traded shares was climbed to Rs 10.679 billion from Rs 8.945. The capitalisation of local equity market maintained at Rs 5.429 trillion after opening at Rs 5.394 trillion.
Out of 358 companies 203 closed in positive and 129 in negative while the value of 26 stocks remained intact. Wyeth Pak Limited was the biggest price gainer of the day up by Rs 86.25 to Rs 1811.25 followed by Colgate Palmolive up by Rs 44.99 to Rs 1899.99. Millat Tractors and Abbott Lab were led the down hill trend decreased by Rs 6.45 to Rs 530 and Rs 5.90 to Rs 352.75.
Active list was topped by Lafarge Pakistan with 31.958 million shares as it close at Rs 9.79 after opening at Rs 9.31. K.E.S.C was on the second position with 31.239 million shares added Re 0.08 to Rs 7.98. It was followed by BoP with 25.786 million shares shed by Rs 1.24 to Rs 13.45, PTCLA with 22.432 million shares up by Rs 1.23 and Sui North Gas with 16.689 million shares higher by Rs 1.24 to Rs 26.16 respectively.
KSE adds 187 points on Moody

 

[Devil Soul]

KSE closes at all-time high with rising volumes

July 11, 2013

KARACHI - Pakistan stocks closed all time high led by oil, banking and cement stocks on bullish sentiments following IMF approval on $5.3b Extended Fund Facility and rising international oil prices.
At local equity market benchmark KSE-100 share index added 263.72 points or 1.16 percent to stop the day at 22984.94 points compared to 22721.22 points of the previous day.
Equity analyst at Arif Habib Ahsan Mehanti said institutional buying witnessed ahead of earning announcements amid hopes for energy deals with China. Higher cement sales annual data, foreign interest in blue chip stocks and speculations on early resolutions of circular debt issues in energy sector played a catalyst role in bullish activity at KSE.
KSE-Allshare index added 191.55 points or 1.20 percent to close the day at 16182.72 points, KSE-30 share index grew by 267.39 points or 1.51 percent to conclude the day at 17931.32 points while KMI-30 share index extended by 522.94 points or 1.31 percent to stop the day at 40374.34 points.
Record activity was witnessed at local bourse as volumes reached closed to 4-year high of Rs.18b. Large cap stocks supported the overall activity as foreign inflows increased which is evident from top 3 stocks make 35pc of the volume. PSO with huge volume of Rs.3.1b increased by 5pc due to aggressive institutional buying. PPL Engro Corp and OGDC also witnessed good activity, dealer observed.
The day turnover of stock market was 338.604 million shares after opening at 351.214 million shares and the value of traded shares was climbed to Rs 18.195 billion from Rs 14.333 billion while the capitalisation of local bourse maintained at Rs 5.565 trillion compared to Rs 5.499 trillion of a day earlier.
Shares of 369 companies were traded on Wednesday where losers beat the gainers 163 to 188 while the value of 18 stocks remained intact. Unilever Food was the biggest price gainer of the day up by Rs 240 to Rs 5129 followed by Island Textile higher by Rs 30 to Rs 642.75. Wyeth Pak Limited and Indus Dyeing were the biggest losers of the decreased by Rs 79.44 to Rs 1799.50 and Rs 15.544 to Rs 525.
PIAC(A) was the top traded company of the day with 39.572 million shares as it closed at Rs 9.89 after opening at Rs 10.84. National Bank was on the second position with 19.302 million shares up by Rs 1.78. It was followed by Sui North Gas with 14.889 million shares shed by Re 0.53 to Rs 26.93, PTCLA with 14.625 million shares down by Rs 0.77 to Rs 25.36 and KESC with 11.166 million shares off by Re 0.18 to Rs 7.51.
KSE closes at all-time high with rising volumes

 

[Devil Soul]

Stocks soar above 23,000-level
OUR EQUITIES CORRESPONDENT
KARACHI: After a day’s breather, bulls were back at the stock market on Friday. The KSE-100 index recovered all of the losses of Thursday, gaining 290.19 points. For the first time, the index crossed the 23,000 points level on closing basis on Friday, to settle at 23,037.32 points.

The day’s trading, however, was marred by depressing low turnover, both in terms of volume and value.

Market participants said that besides the Ramazan effect, which usually witnesses low investors’ interest, the shortened trading timings during the holy month, also results in low turnover.

“The investors also decided to remain on the sidelines, after the unexpected market fall on Thursday,” said a senior broker.

He also asserted that the country’s equities had already reached their historic valuation of nearly 10 times the earnings. Acting like panic-prone herd over the Thursday’s fall and rumours of gloom and doom doing the rounds, punters and short-term individual investors were first to offload equity worth $2.17 million on Friday.

Mutual funds, the asset managers of public money also thought discretion to be better part of valour and sold $1.91m worth shares to take profit.

The situation was salvaged by the foreign investors who made net purchases of $2.17m worth shares on their favourite heavyweight oil and gas sector.

Thus, the stock prices of PPL, PSO and POL and OGDC saw an upward movement. Among the local participants, companies and banks were also bold buyers of equity worth $1.38m and $0.61m, respectively.

The star performer for the day was Engro Corporation, which closed at ‘upper circuit’ or 5 per cent higher than the previous day’s close, in a little over an hour of start of trading on Friday. Investors rushed to buy Engro stock, after the company confirmed through its official notice to KSE that the government had diverted 60MMCFD from Mari Gas to its fertiliser plant which has enabled the company to start production of urea from both its plants.

Analyst Khalil Usmani stated that the banking sector remained in the limelight after the country entered into new IMF Extended Fund Facility. In anticipation of monetary tightening in coming months the investor confidence was seen in big banks, MCB, BAFL, UBL, and HBL, which closed up 2.7pc, 4.6pc, 1.3pc and 2.3pc, respectively.

Analyst Ahsan Mehanti commented that stocks closed at new all-time high amid thin trade in the earnings announcement season at the KSE led by oil, banking and fertiliser stocks on strong valuations.

In all, 334 scrips came up for trading with 228 gainers, 83 losers and 23 unchanged. Turnover plunged by 28pc to 125m shares on Friday, from 174m shares the previous day. Market capitalisation gained Rs73 billion to Rs5.597 trillion, from Rs5.526 trillion.

The top-10 volume leaders were PIA with trading noted in 15m shares up by 88 paisa to Rs9.87. It was followed by Bank Alfalah up 90 paisa to Rs20.58 on 11m shares.

Fauji Cement edged higher by 16 paisa to Rs14.20 on 9m shares; Maple Leaf Cement was in demand with 8m shares traded up by 75 paisa to Rs25.10.

NBP gained 61 paisa to Rs49.92 on 4m shares; Engro Corporation hit the upper limit with gain of Rs8.22 to Rs172.75 on 4m shares; Pakistan Petroleum rallied by Rs5.70 to Rs241.65 on 4m shares and Engro Foods was up by Rs4.20 to Rs158.20 on 4m shares.

 

[nasirsadiq]

KSE market is taking too much flight Advisers are saying that it is going to fall now.

PTCL shares are going to fall now that's for sure..

 

[darkinsky]

The Economist Blog: How did Karachi get a world-beating stock exchange?

AS RICH countries’ economies slump, brave investors looking for fast returns may be tempted to look further afield. Which of the world’s more exotic markets offer the best returns? Mexico has developed a following among investors bored of Brazil. The Philippines has been on a roll too, recently winning its first ever investment-grade credit rating. But virtually everywhere is beaten hands down by the tiny Karachi Stock Exchange (KSE), which has risen by 40% so far this year in local currency terms. Of stock markets tracked by The Economist, only Japan’s has performed better.

This may not be what most people associate with Pakistan’s most populous city, which is more famous for terrorist explosions than economic booms. The exchange’s strong performance is partly due to improving conditions in Pakistan, including a reasonably free and fair election in May which was followed by a peaceful handover of power. Meanwhile, the slowing down of the BRIC economies has driven investors to try out ever more exotic markets. All the same, the KSE’s soaring growth is surprising: Pakistan’s economy is expected to grow by only about 3.6% this year, much less than many other emerging economies. And the stock exchange itself—which has a market capitalisation of just $52.7 billion—is a tricky place to invest, with only 60 of its 569 listed companies trading regularly.

Part of the Karachi exchange’s lightning growth is due to an unusual amnesty enacted in January 2012. The authorities declared that from that date, investors would be allowed to buy shares with no questions asked about where their money came from. The amnesty, which is due to last until June 2014, is designed to encourage people with undocumented funds to invest them in the market, thus bringing the cash into the formal economy and within reach of the taxman. It seemed to work: after the amnesty’s introduction, the average daily volume traded on the KSE more than doubled.

The boom is good news for investors. But some wonder if there may be a downside to relaxing the rules on checking the origins of the money being pumped into the bourse. Pakistan has more than its fair share of corruption: it falls within the bottom quarter of a worldwide ranking compiled by Transparency International, an anti-graft watchdog. If people want to launder their ill-gotten gains, the authorities have their work cut out to stop them: flagging up suspicious activity is left to banks and brokers. The KSE’s growth is real enough, but the source of the rupees fuelling its boom is not always clear.