KARACHI: Stocks started off the week on a firm footing with the KSE-100 index managing to gain 96.32 points (0.24 per cent) to close at 40,023.02 on Monday.
Foreign investors bought stocks worth $1.25 million. Market participation remained upbeat with volume at three-month high at 389m shares. Trading value, however, wound down by 17.3pc to Rs12.4 billion as the activity was more pronounced in retail favourites.
K-Electric emerged as volume leader gaining 2.36pc on 50m shares as the majority equity holder confirmed its interest in selling off its stake in the utility. Fauji Cement also added 0.6pc on announcement of rehabilitation of its production line.
“The rally at the stock market was supported by the news of 20 basis points cut in the profit rates on various saving certificates and bonds, increasing the comparative valuation of the stock market for potential investors,” mused dealers at Global Securities.
NBP inched up 4.35pc and stood out as the bellwether after reporting consolidated earnings of Rs2.84 per share in 2QCY16 on Friday amid heavy foreign interest. PSO up 1.25pc on reports of record imports of petroleum products in July.
Adamjee Insurance rose 2pc on back of better than expected earnings announcement. “From sector perspective, OMCs, pharmaceuticals, telecommunication had a field day while performance from banks and cements remained mostly muted,” said analysts at Intermarket Securities. Other dealers pointed out that EFERT rose 0.50pc and FFBL 0.53ppc on the back of data released by NFDC showing month-on-month growth in the fertiliser despatch numbers.
Published in Dawn, August 30th, 2016
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