KSE adds 213 points, 30-index crosses 10,000 barrier

KARACHI - Bullish behaviour helped local equity market to gain further 213.43 points or 2.31 percent on Friday to close at 9,436.82 points as Pakistans current account deficit shrinks to $527m in the first 2 months, while $82m surplus was recorded in August 2009.
The KSE-100 index opened in green zone with a gain of 53.44 points and index crossed the 9,400 points level during the session. The KSE 30-index crossed the 10,000 psychological barrier and closed at 10,146.21 points with a gain of 210.15 points.
Importantly, market capitalisation edged up to Rs 2.727tr as compared to Rs 2.682tr of last session, showing a solid gain of Rs 45b in just one day.
Hard hitting by index heavy weights combined together forced and helped the index hit a double ton during the day, surprised lot of investors who are not willing to support the present bull-run. The index has nearly reached the 9,500 level with reasonable volumes. The unstoppable behaviour of the market is quite fearful for lot of investors, especially who suffered losses during the earlier market crisis.
The present market momentum is majorly driven by foreign investors, who are regularly investing their funds in the Pakistani stock market.
The question arises, why they are investing in Pakistani market at such high index level. We are of the view that valuation probably looking more attractive as compared with other markets in the world, expressed analyst Shahid Ali at HMFS.
Furthermore, gradually the economy is returning towards a little stable phase after political government has taken over the control of government, Shahid added.
Trading activity was further increased as compared to the last trading session. The ready market volume inched up to 246.295 million shares against last trading sessions 224.441 million shares. Total trading value of the exchange moved down to Rs 13.91b from Rs 15.307b of last session. Of 364 actively traded scrips at the local equity market, as many as 254 gained value, 86 lost while the worth of the shares of 24 cos remained unchanged.
Rise in Urea and DAP offtake by 42 percent YoY and 740 percent YoY August respectively, rising foreign exchange reserves, high international crude oil prices, rising global equity markets, continuing foreign interest in banks/oil/fertilizer scrips and resolution of circular debt issue of OMCs/Refineries/IPPs played an important role in positive activity at KSE, stated market expert Ahsan Mehanti.
Apart from POL rest of the E&P stocks keep moving with the bullish wave. Banking giants also supported the market to clime the steep mountain. PSO seems a one way ticket as the unstoppable bullish behaviour seems justified for the time being.
JSCL was witnessed as the volume leader of the day with a healthy turnover of 30.898 million shares, followed by AHSL with 13.006m shares, PTCL 12.442m shares, NBP 12.284m shares, Pak PTA 10.543m shares, Bank Al-Falah 10.297m shares, ANL 10.290m shares, FFBL 8.711m shares, NML 7.271m shares, Engro Chemical 7.227m shares namely.
Prominent gainers at the KSE include Unilever Foods, up by massive Rs60/share to close at Rs1,400, Siemens Pak Engineering gained Rs45/share, closing at Rs1,290, Wyeth Pak added Rs18.30/share and closed at Rs1,249.80 with the trading of only 1 share, Millat Tractors up by Rs16.57/share and its total value was improved to Rs348.09, PSO added Rs15.59/share to close at Rs330.75.
On the other side, Pak Services lost Rs10.30/share to close at Rs212 with the trading of only 1 share, Bata Pak down by Rs6.59/share, closing at Rs985, Clariant Pak lost Rs4.14/share and its value was decreased to Rs156.03, Exide Pak down by Rs4.08/share and closed at Rs157.92, Ismail Industries lost Rs2.79/share to close at Rs54.12.