Here is a News report on foreign buying pushing shares to four year highs in Karachi:
The Karachi Stock Exchange’s benchmark 100-share index rose 2 percent on Thursday to close at a four-year high as strong foreign buying encouraged local investors to take new positions in key stocks, dealers said.
“Healthy foreign buying buoyed market sentiment,” said Ovais Ahsan, head of equity sales at Optimus Capital Management. Foreign investors bought shares worth $13 million in Thursday’s and Wednesday’s sessions.
The benchmark 100-share index increased by 277.40 points, or 1.96 percent, to close at a 48-month high of 14,419.92 points – the level last seen on May 15, 2008. The index closed just 34.58 points lower than the intra-day high of 14,454.50 points. The KSE 30-share index surged by 211.79 points, or 1.71 percent, to 12,578.11 points.
Out of total 389 companies’ shares traded, 247 advanced, 90 declined, while 52 closed unchanged.
Stocks which played a leading role in driving the 100-share index up included Pakistan Telecommunication Company Limited (PTCL), Oil and Gas Development Company Ltd. (OGDCL), MCB Bank, Allied Bank Limited, Habib Bank Limited, Standard Chartered Bank Limited and Unilever Pakistan. Other notable stocks included Lotte PakPTA, Fatima Fertilizer Company, National Bank of Pakistan, Lucky Cement, Engro Foods, Faysal Bank and Nestle Pakistan.
Ahsan said that foreigners were taking fresh positions as Pakistani markets remain cheaper in the region. Moreover, foreign investors were expecting a positive outcome from ongoing talks between Pakistan and the United States over new terms of engagement on war on terror.
He said that fertiliser stocks remained hot for investors on reports that the government might buy 0.3 million ton of urea from local manufacturers instead of importing the same quantity to maintain its strategic reserves.
Samar Iqbal, an equity dealer at Topline Securities, said that heavyweight OGDCL remained in the limelight and gained Rs3 on reports that the government was expected to increase wellhead price of Qadirpur field.
Ahmed Rauf, a trader on foreign desk of JS Global Capital, said that many of the investors were bringing in their money into Pakistan since the government allowed them to invest in shares without disclosing their source of investment till June 2014.
He added that foreigners were acquiring stocks in fertiliser, banking, cement and oil sectors. “Yesterday, they were seen buying stocks including Fatima Fertilizer Company, PTCL, Engro Corporation, Lucky Cement, DG Khan Cement and Karachi Electric Supply Company.”
Turnover improved to 293.97 million shares from 246.39 million shares traded in the previous session. Turnover in futures market enhanced to 16.70 million shares from 11.87 million shares traded a day earlier.
Market capitalisation rose by Rs68 billion to Rs3,683 billion.
PTCL was the turnover leader with 26.41 million shares as it closed at Rs14.42 with one-day maximum allowed increase of Re1. It was followed by Lotte PakPTA with 22.76 million shares turnover as it closed at Rs9.32 with an increase of 78 paisas. DG Khan Cement was on third position with 22.76 million shares turnover as it closed at Rs43.41 with a surge of Rs1.57.
Foreign buying helps KSE 100 index rise 2pc, closes at 48-month high - thenews.com.pk