KARACHI, Jan 22: Stocks continued its bullish run on Tuesday in healthy turnover with National Bank of Pakistan in the limelight as investors expected good payouts and dividends and strong corporate profits December end quarter, dealers said.“The KSE 100-index rose by 1.5 per cent, or 250 points, on robust value buying in the frontline stocks that took the short-sellers by surprise.
The renewed buying that turned wild in post midday session was yet again led by banking, fertiliser and E&P stocks,” said Hasnain Asghar Ali of Escorts Capital Ltd.
While cement front-liners, he added, duly caught the sentiment sighting aggressive activity the day traders duly joined the bandwagon as depicted by decent rise in value and volume, the positive momentum continued uninterrupted through out the session, on funds inflow both from local and off-shore circuits.
The KSE 100-share index ended 1.52 per cent, or 253.28 points, higher at 16,894.09 points. It traded in a broad range as it made an intra-day high and low at 16,909.05 and 16,640.81, respectively.
Turnover increased to 184.13 million shares, compared with 128.25m shares traded on Monday and trading value rose by 2.57 billion to Rs3.73 billion from Rs3.73bn in the previous trading session. Market capitalisation stood at Rs4.21 trillion, higher than Monday’s Rs4.15tr.
“Reduction in political temperature coupled with likely announcements of December results compelled investors to buy quality stocks. National Bank closed at upper limit thanks to institutional buying as investors believe that the bank will again pay a handsome dividend. FFC also improved in expectation of healthy payout in tomorrow’s meeting,” said Samar Iqbal, a dealer at Topline Securities Ltd.
Investors also accumulated energy stocks and that helped the index maintain its positive momentum. Heavyweights such as Oil and Gas Development Co Ltd, Pakistan Oilfields and Pakistan Petroleum Ltd all made significant gains. OGDC rose Rs2.08 to Rs188.96, POL ended Rs11.27 higher at Rs451.91 and PPL increased by Rs3.26 to Rs178.95.
Foreign investors also continued their fresh buying on Tuesday as they bought shares worth a net $1.24 million after buying a net $872,230 on Monday, bringing the total for this month at $6.08m.
Mutual funds were the major buyers with equity worth $6.08m.
The biggest gainer was Nestle Pakistan which ended Rs95 higher at Rs4,600, followed by Bata Pakistan Ltd which closed Rs35 higher at Rs1,285. Unilever Food witnessed the biggest loss as it shed Rs200 to Rs3,800 followed by Island Textile, which ended Rs50 lower at Rs950.
The KSE-30 index ended 1.53pc, or 208.26 points, higher at 13,788.61.
Out of the 350 companies traded, the value of 238 increased, 85 decreased while 27 remained unchanged.
The second and third tier companies dominated the 10 most active traded stocks but National Bank hit its upper circuit, Fauji Cement topped the list as it ended 9 paisa higher at Rs7.39 on turnover of 14.24 million shares, Jahangir Siddiqui Co Ltd rose 39 paisa to Rs15.69 on 12.06m shares and Maple Leaf Cement gained 30 paisa to Rs16.22 on 11.94m shares.
Pakistan Telecommunications Co Ltd increased by 61 paisa to Rs16.86 on 9.85m shares, National Bank of Pakistan gained Rs2.44 to Rs51.26 on 9.66m shares and TRG Pakistan ended 27 paisa higher at Rs7.20.
DG Khan Cement rose Rs1.54 to Rs53.80 on 8.41m shares, JS Growth Fund gained marginally by 6 paisa to Rs10.05 on 5.63m shares and Byco Petroleum ended 4 paisa higher at Rs13.94 on 5.51m shares. KESC gained 29 paisa to Rs5.72 on 4.4m shares.