STOCK MARKET UPDATE: 09.05.2013

STOCKS

Karachi Stocks Up 209.81 Points:
KARACHI, May 08: At the close of trading, the KSE-100 index was at 19472.55, up 209.81 points. 

(Today 9^th April- Market is 199.60 Up@ 11.16 am)

08 May,2013

5 TOP GAINERS  &  LOOSERS:

Shezan Int’l	Rs 30.60	Nestle Pak	Rs (250.00)
Exide Pak	Rs 21.75	Rafhan Maize	Rs (233.90)
Indus Dyeing	Rs 18.20	Wyeth Pak	Rs (77.10)
Murree Brewery	Rs 16.07	Bata Pak	Rs (60.00)
Colgate Palmolive	Rs 15.00	Island Textile	Rs (28.00)

Stocks stage rally of 209 points

KARACHI, May 8: A surprise strong rally triggered and led by foreign investors saw the KSE-100 index climb by staggering 209.81 points or 1.09 per cent to close at 19,472.55 points on Wednesday.
When the foreign funds enter to buy, they usually prefer stocks that promise high growth, high yield. The top tier scrips across the board, therefore, were in demand which generated healthy volumes.
The figures released by the National Clearing Company of Pakistan showed foreign portfolio inflow at a massive $13.92 million on Wednesday. Keeping aside a big portion emanating from the Unilever Overseas buyback of shares in Unilever Pakistan, the foreign fund investment into Pakistan equity market was about the highest seen in recent days.
Analysts attributed the foreigners’ interest generally to their penchant for Asian markets and particularly to a possible sense of settling down of matters, political and economic in Pakistan. “So near to the elections, foreign funds may be confident of political change, which would put into power an investment-friendly government,” said a market participant.
He pointed out that though the buying was across the board, the foreign fund managers were careful to pick stocks, which they believe were attractive at current values.
Oil and gas, cement, textiles and banks saw the greatest amount of activity. The trading value of shares on Wednesday also shot to Rs9.247 billion, which represented increase of Rs3.972bn over the earlier day’s trading value at Rs5.276bn.
The local investors meanwhile showed a bit of nervousness with most groups deciding to take profit and sail through the elections. Except for the mutual funds which bought $1.53 million worth stocks to balance their portfolio, the rest of the participants took to sales.
Companies offloaded stocks worth $1.45 million and banks $2.31 million. Individual retail and weak holders cleared the decks with heavy sale of $6.14 million worth stocks. They were however able to secure good capital gains on offloading at peak prices, which pulled the index from its high at 19,515.94 points.
Since the buying spree continued all through the day the index low was the earlier day’s closing at 19,262.74 points.
Fahad M. Ali at brokerage JS Global affirmed that bulls were completely in charge at the bourse on Wednesday. DGKC, NML and MCB Bank outperformed the market closing after a gain of 4.8pc, 3.7pc and 3.3pc respectively. Most of the local institutions in the market maintained a wait and watch approach.
Samar Iqbal, manager equity sales at Topline Securities stated that traded value crossed Rs.9bn mark with renewed interest in large cap stocks like Engro, PPL, OGDC, DGKC and PTC. Investors appeared confident that the election process and the formation of new government would not pose any major risk, analysts said.
In the aggregate, 395 stocks came up for trading on Wednesday with gainers at 209, leading losers at 158 by a wide margin. Turnover rose to 252 million shares, from 173 million shares traded on Tuesday. Market capitalisation saw addition of Rs32bn to Rs4.803 trillion, from Rs4.771tr.
Among the volume leaders were Fauji Cement with 54m shares up by 11 paisa to Rs10.05, TRG Pakistan down 90 paisa to Rs8.78 on 21m shares, D.G. Khan Cement posting hefty gains of Rs3.26 to Rs71.20 on 9m shares, Engro Corporation up by Rs1.98 to Rs137.01, PTCL higher by 51 paisa to Rs18.12 on 6m shares, NBP up by 22 paisa to Rs39.03 on 6m shares, Nishat
(Chunian) stronger by Rs1.72 to Rs49.69 on 5m shares and the loss-making PIA down by 54 paisa to Rs4.61 on 5m shares.

MOHAMMED SALEEM MANSOORI