Karachi stocks inch up, eyes on central bank for rate decision

The KSE benchmark 100 shares index inched into positive territory in a lackluster trade on Thursday on hopes of further easing in the central bank’s policy stance, dealers said.
“It wasn’t a bull run, just a recovery per se short recovery as values have become attractive in the oversold market,” analyst Khurram Schehzad at Lakson Investments said.
The KSE-100 shares Index gained 125.89 points, or 0.38 percent, to close at 33,368.84 points. The KSE-30 shares Index gained 71.75 points, or 0.33 percent, to end at 21,787.45 points.
As many as 361 scrips were active, of which 193 advanced, 150 declined and 18 remained unchanged.
Samar Iqbal at Topline Securities said the market gained marginally with the benchmark index posting gains in the early session; however due to profit-taking in the oil and selected stocks, the index came down.
“Investors remained cautious due to fear of continuous foreign outflows and local mutual funds selling, while the market is keenly watching foreign fund managers’ activity to judge the future direction of the equities.”
Going forward, analysts expect the market to pick-up momentum due to the upcoming monetary policy announcement, scheduled in the middle of the current month.
The ready market turnover declined further to 176.520 million shares as compared to 180.279 million shares in the last trading session.
After opening in the positive territory on covering-up of short positions by speculators, the market witnessed profit-taking, a dealer said. The benchmark index moved in a range of 150 points and settled at 125.89 points.
Mohamad Mobeen at JS Global Capital said the KSE witnessed another volatile session, while volumes remained lacklustre.
“Fatima Fertilizer (FATIMA) reached its upper circuit today due to expected growth in its profitability on the reports of debottlenecking of its ammonia plant and expected monetary easing.”
Oil and gas sector also remained active with Pakistan State Oil (PSO) gaining 2.5 percent due to slight recovery in the global oil prices.
Ferozsons Laboratories (FEROZ) was down 3.5 percent, as it remained under pressure; following the announcement of cut in Hepatitis C drug Sovaldi prices.
Ahsan Mehanti at Arif Habib Corporation said the stocks closed bullish amid across-the-board recovery led by selected scrips on strong earnings outlook.
Recovery in the international oil prices, speculations ahead of the SBP key policy rate announcement this month and reports on record growth in cement and fertiliser sales in January played a catalytic role in the bullish sentiment at the bourse.
Highest volumes were witnessed in K-Electric Limited with a turnover of 21.359 million shares.
The scrip gained seven paisas to close at Rs8; followed by Jahangir Siddiqui Company Limited (JSCL) with 15.159 million shares, as it sheds Re1 to end at Rs18.99.
Pak Elektron was the third with a turnover of 14.058 million shares, as it sheds three paisas to finish at Rs55.08 per share.