Karachi Stocks open fiscal year on bullish momentum

Market watch: Stocks open fiscal year on bullish momentum

KARACHI: The stock market kicked off the new fiscal year on a strong and positive note, as a broad rally saw the index closing up more than 350 points in a predominantly bullish session.

“The market recovered after the June-end effect tapered off; and though volumes remained low, investors’ active interest was seen in cement stocks in expectation of better results for the period ended June 2013,” reported Topline Securities’ Senior Manager Equity Sales Samar Iqbal. “Lower than expected inflation numbers and Pakistan’s likely re-entry into an International Monetary Fund programme boosted investors’ sentiments,” she added.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index surged 1.70% or 357.47 points to close at 21,363.16 points. Trade volumes rose nominally to 155 million shares, compared with Friday’s tally of 152 million shares. The value of shares traded during the day was Rs6.11 billion.

“The fertiliser sector finally reversed some oversold momentum, as news reports anticipating a price hike of Rs250 per bag of urea pushed Fauji Fertilizer up 2.6%,” reported Ovais Ahsan, analyst at JS Global Capital.

Shares of 329 companies were traded on Monday. At the end of the day, 222 stocks closed higher, 73 declined while 34 remained unchanged.

Fauji Cement was the volume leader with 28.13 million shares, gaining Rs0.78 to finish at Rs14.07. It was followed by Bank of Punjab with 12.93 million shares, gaining Rs1.00 to close at Rs13.74; and Pakistan Telecommunication Company with 9.67 million shares, losing Rs0.02 to close at Rs22.17.

Foreign institutional investors were net buyers of only Rs36.02 million worth of securities.