KARACHI: Positive activity was witnessed at the Karachi share market on Thursday following rising global equity markets and renewed foreign interest in the blue-chip scrips on strong valuations.
Ahsan Mehanti, a director at Arif Habib Investments said that positive activity was witnessed as foreign investors dominated the energy, cement, oil and gas sectors on strong valuations ahead of major construction efforts to rebuild the flood-affected regions in the country.
The KSE-100 Index gained 27.51 points, or 0.28 percent, to close at 9,762.89. The KSE-30 Index lost 5.38 points, or 0.06 percent, to close at 9,636.05.
The number of transactions decreased to 32,943 from 41038 of the last trading session. Shares of 336 companies were traded, out of which 166 advanced, 141 declined and 29 remained unchanged.
“Bullish activity in the global capital markets on US and China manufacturing strength data was taken positive despite security situation concerns in the country and rising fiscal deficits and falling GDP growth rate on flood losses mounting to $43 billion,” said Mehanti.
Samar Iqbal, a dealer at the Topline Securities said that the global equity markets surge and expected positive statement from the International Monetary Fund (IMF) acted as catalyst to the KSE index to close with an increase of 0.28 percent.
“HUBCO remained the volume leader on the back of foreign interest, while locals were mainly active in cement stocks as DGKC and Lucky Cement were also among the volume leaders.”
Hasnain Asghar Ali, a dealer at Aziz Fida Husein said that despite negativity outnumbering optimism, the benchmark sustained the levels attained after the regulator decided to address the lingering issue of ready board leverage.
Sara Shahid, an analyst at Elixir Securities said that it was an uneventful day with low volumes as participants remained largely on the sidelines despite reports of foreign participation.
“Investors were wary of taking new positions in lieu of the revised economic estimates that forecast higher inflation between 15-20 percent and the GDP growth was down to 2.5 percent. Activity was also low possibly as investors waited for the IMF statement due this evening regarding aid dispensation for the damage wreaked by floods.”
HUBC topped the volume leader list on talks of foreign interest in the defensive play. With locals on the sidelines, foreign inflows are likely to determine market direction.
The ready market volume decreased to 43.817 million shares from 52.248 million shares during the last trading session. Futures market volume decreased to 1.891 million shares from 2.316 million shares during the last trading session.
HUBC was the volume leader with a turnover of 4.278 million shares as it gained 14 paisas to close at Rs36.76 followed by JSCL with a turnover of 4.271 million shares as it gained seven paisas to close at Rs10.05. DGKC with a turnover of 4.196 million shares closed at Rs25.4 with no change.