KARACHI, Nov 29: Stocks raised to yet another record high on Thursday as the banking sector came into the limelight led by MCB Bank, which is expected to benefit from the delisting of Unilever, dealers said.
The KSE 100-share index ended 0.63 per cent, or 103.05 points, higher to record closing high of 16,527.08 points. It also hit a fresh all-time high at 16,556.29 points.
Turnover decreased to 255.98 million shares, compared with 312.7 million shares traded on Wednesday, as some investors were cautious and preferred to stay on the sidelines as the index breached its previous all-time high. Trading value also fell to Rs6.56 billion from the previous day’s value of Rs7.62 billion but market capitalisation rose to Rs4.15 trillion, compared with Rs4.13 trillion on Wednesday.
“The stock market closed at yet another high led by banking and some other blue-chips amid hopes for cut in the SBP policy rate due early next month,” said Ahsan Mehanti from Arif Habib Ltd.
Intention of one of the largest consumer goods company, Unilever Pakistan with market cap of $1.4bn, to de-list from the country’s three bourses was announced yesterday.
Unilever Overseas Holding Ltd, which currently holds 75.07 per cent of the issued capital of Unilever Pakistan, said it intends to acquire all of the issued ordinary shares held by other shareholders at Rs9,700 per share.
Unilever was the once again the biggest gainer, for the second consecutive day, as it increased by Rs509.25 to Rs10,694.25, followed by Unilever Food which was up Rs210 to Rs4,410.
Besides few local and foreign shareholders, this may bode well for selected listed firms like Adamjee Insurance (AICL) and MCB Bank (MCB) who are old minority shareholders of Unilever Pakistan, Topline said in a note.
“In case the price remain as mentioned in the announcement at Rs9,700, the AICL EPS will inch up by Rs1.8 and MCB by Rs0.3 assuming both willing to sell at the agreed price after considering capital gain tax and cost of purchase,” the note added.MCB Bank gained Rs1.82 to Rs189.90 and AICL closed Rs2.54 higher at Rs73.77.
However profit taking was witnessed in the cement stocks as they had been increasing in the past few trading sessions.Foreign investors bought equities in the net sum of $2.24 million, compared with $2.6 million on Wednesday, taking the current month portfolio investment to $34.54 million. Among the local participants, banks were the major buyers as they bought shares worth a net $4.6 million.
The KSE-30 index ended 0.60 per cent, or 80.20 points, higher at 13,381.21 and out of the 382 companies traded, the value of 173 increased, 182 decreased while 27 remained unchanged.
Among the 10-top traded stocks, Jahangir Siddiqui Co charged from the front with volume of 28.09 million shares, up 97 paisa to Rs16.65, DG Khan Cement fell 94 paisa to Rs54.20 on 19.39 million shares and Fauji Cement shed 10 paisa to Rs6.84 on 18.84 million shares.
Maple Leaf Cement ended 87 paisa lower at Rs15.22 on 18.81 million shares, Byco Petroleum rose 31 paisa to Rs10.62 on 9.89 million shares and Engro Foods Ltd increased by Rs2.41 to Rs87.07 on 9.8 million shares.
The monopoly utility provider KESC saw turnover of 9.69 million shares, up by 31 paisa to Rs6.93, Azgard Nine gained 6 paisa to Rs8.60 on 8.2 million shares but Dewan Cement ended 23 paisa lower at Rs5.25 on 6.26 million shares.
Colony Mills Ltd rose 54 paisa to Rs6.57 on 5.97 million shares.