The Capital market was opened on a bullish note this week as lower Consumer Price Index (CPI) reading for May 2015 and some limpidity over the upcoming budget channelized the index benchmark.
As compared to the previous session of 33056.79 points, Karachi Stock Exchange (KSE) 100 index gained 506.59 points which makes the closing at 33563.38 points. An advancement of 345.76 points was also made in KSE-30 index which closed at 21324.34 points against 20978.58 points of last closing.
Faisal Bilwani, an analyst in Elixir Securities said Pakistan equities closed first day of the week positive as inflation reading that was announced inline estimates at 3.16 percent Year on Year for May 2015 ensured momentum from Friday sustained with benchmark managing a close above 33,500.
The fear of tax rate increase in the upcoming budget on the gains was relieved when the reports of institutional buying including foreigner’s interest in index names was out and the stocks were opened positive.
The Engro group reached the upper price limit on the stock after foreign buying. On the contrary, the value hunters took advantage of the discounts seen recently. The cement has also shown positive signs after the approval of different mega projects in the country. However, the sales of cement have declined in the month of May. The shares of K-electric traded well over the past few days and the share has now reached the three month high rate of Rs 8 per share.
“We see resistance near 34000 and expect volatile market primarily guided by news flow related to budget due this weekend with equity investors more or less only looking for clarity on gains tax”, said Bilwani.
Bilal Asif; the Habib Metropolitan Financial Services’ analyst said, “The benchmark runs on High Octane without breaks and added nearly 506 points with handsome volumes. Low cap stocks generated hefty volumes”.
The textile sector has also boosted after the clarity of incentives. Jahangir Sidique, one the highly speculative stock did well today and was one of the top ten stocks in terms of trading. The news of re building the PIA made their stock strong. Due to the clarity in the taxes, their implementation after the budget has improved the confidence of people in the stock market and the market is likely to boost in the next few days.
Certain rumors and news create opportunities for the investors and speculators. There are just four days left in the arrival of budget,2015 and the investors are likely to holding the stock for the next few days, said Asif.
Due to the arrival of budget, the market volume ahs decreased significantly and the market traded 261.55 million shares which are quite low that the 304.888 million shares sold in the last sessions. However, you will see a rise in the capitalization of the market and in the current session, the capitalization was Rs 7.248 trillion as compared to Rs 7.179 trillion of the previous session.
As many as 375 scrips were used in the session and only 244 managed to advance while 105 were declined. 26 scrips out of 375 remain unchanged. Trading value at local stock exchange decreased and ended at Rs 11.623 billion.
Meanwhile, today was a good day for KMI-30 index and it gained 593 points and closed at 55261.14 points. The last session of KMI-30 closed at 54667.97 points. A bump was also seen in the KSE all-share market where the market ended with an increase of 227.85 points. The market closed at 23483.19 points in contrast to 23255.34 of the last session.
Today, K-electic limited was the volume leader of the market with 37.491 million shares. The shares of K-electric closed at Rs 8 per share. K-electric was closely followed by TRG Pak Limited with the overall trading of 23.162 million shares and the shares closed at Rs 22.524. Ghani Automobile also did well as 16.662 million shares were traded in the session and the share closed at Rs 8.65