KARACHI: The Karachi Stock Exchange’s (KSE) benchmark 100-index surged by 32.89 points to a fresh all-time high of 16,270.48 points on Monday against the previous high of 16,253 points on November 20, while turnover increased by nine million shares to 260.19 million, said dealers.
Analysts said that low-priced stocks led the way mostly in cement, textile and banking sectors. “Stocks closed bullish amid higher trades lead by second-tier stocks in cement, textile and the banking sectors on strong valuations,” said Ahsan Mehanti, an analyst at Arif Habib Corp.
The KSE-100 index rose by 32.89 points, or 0.20 percent, to 16,270.48 points from 16,237.59 points recorded in the last session. At one time, it reached a high of 16,311.03 points but could not sustain, while the lowest level of the day was recorded at 16,237.59 points. The KSE-30 index increased by 26.18 points, or 0.20 percent, to 13,197.47 points in the session.
Shares turnover was higher by nine million to 260.19 million shares but the value declined to Rs3.68 billion from Rs3.70 billion.
Concerns over rising circular debt in the energy sector, explosions in the city and uncertainty in the global stocks on Europe debt crisis affected the sentiment. “Strong textile exports and higher local cement prices played a catalyst role in the bullish sentiment at the KSE,” said Mehanti.
Hasnain Asghar Ali, COO of Escap, said active trading was witnessed in low-priced stocks with some carrying turnaround stories due to declining financial charges and rise in the local and export demands, while some carrying sensation of strategic buyouts, while others on mere speculation kept the junk portfolio active.
The KSE-100 companies contributed around 30 percent to the overall turnover, he said.
With concerns over gas supply at the economic front and the existing expectations of likely increase in volatility on the political front, caution is likely to persist. However, in case of deterioration on these issues, the local equity market may react in a wild manner, he said.
“It is, therefore, recommended to select stocks based on consistency in growth, payouts and low-priced stocks, carrying high probability of materialisation.”
An analyst at JS Research said that the textile sector once again remained in the limelight, whereas oil and gas sector was fairly dull throughout the day with no major volumes in the sector, while investors stayed cautious in the banking sector on anticipation of a rate cut in the next monetary policy.
Highest increase was recorded in the shares of Bata (Pak) XD, which increased by Rs71 to Rs1,491 per share followed by Colgate Palmolive, which rose by Rs50 to Rs1,300 per share. Major decline was noted in the shares of Indus Motor Co., which fell by Rs10.11 to Rs261.31 per share followed by Gillette Pak that declined by Rs5.70 to Rs108.30 per share.
Stocks that recorded significant turnover included Summit Bank, Fauji Cement, Maple Leaf Cement, Pervez Ahmed Securities and DG Khan Cement. Summit Bank was the volume leader with a turnover of 29.37 million shares with an increase of two paisas to Rs3.02 per share, followed by Fauji Cement with a turnover of 17.25 million shares with an improvement of six paisas to Rs7.03 per share.
Shares turnover in the futures market surged to 20.59 million from 4.20 million shares traded in the previous session.
Of 386 companies’ shares traded, 248 advanced, 123 declined and 15 remained unchanged.
Bata Pak Rs71.00
Colgate Palm Rs50.00
Island Tex Rs37.50
Indus Motor Rs10.11
Gillette Pak Rs5.70
Exide Pak Rs4.91