Foreign buying of $13m pushes up KSE to 19-month high

KARACHI: Fresh foreign buying of $13 million in a single session on Wednesday placed the Karachi bourse to a 19-month high with blue-chip energy and banking stocks being the major gainers.

“Credit for placing the market to a 19-month high goes to foreigners, who continued to inject their money in select energy and banking stocks,” said Hamad Aslam, Head of Research at BMA Capital.

KSE 100-share index rose 104.66 points, or 1.04 per cent, to close at 10,178.43 points. KSE 30-share index surged 118.70 points, or 1.15 per cent, to end at 10,425.35 points.

With this massive investment of $13 million in this session, the total foreign inflow in the outgoing month of March-2010 jumped to record $112 million, according to National Clearing Company of Pakistan Ltd (NCCPL).

The index mover, OGDCL, rose by 1.77 per cent to Rs129.61 with a turnover of 11.61 million shares. While the second best performing stocks of the day, the NBP closed with maximum increase in a day of five percent to Rs67.83 with 5.82 million shares turnover.

Therefore, investors from different walks of life acquired stocks on across the board where blue-chips remained in primary focus. The Supreme Court’s verdict to implement its orders in letter and spirit over the annulled National Reconciliation Ordinance (NRO) may create some political tension in the short term, but in the long run it is in the great interest of the economy and the country as well, he added.

Hasnain Asghar Ali, analyst at Aziz Fidahusein, said news about issuance of Rs100 billion Sukkuk sometime in May-2010 in an attempt to resolve the circular debt in energy sector came as Sukkuk (relief) for the stakeholders.

This development, therefore, invited some buying in the relevant stocks. Besides, further increase in international oil prices and surge in the usage of DAP in the country reportedly kept the relevant stocks attractive among investors from different walks of lives, he added.

The day’s turnover rose to 199.30 million shares from 147.09 million shares traded a day earlier, showing an increase of 35 per cent on day-to-day basis. Turnover in the future market soared to 14.88 million shares from 5.48 million shares traded yesterday.

The overall market capitalisation climbed by Rs29 billion to stand at Rs2,890 billion. Plus sign dominated the broader market. Out of total 429 active stocks, 206 stocks advanced, 198 stocks declined, while 25 stocks closed unchanged.

Pakistan Telecommunication Company was the volume leader with a turnover of 24.45 million shares. The stock ended at Rs21.01 with a gain of 29 paisa, followed by JS Company at 16.63 million shares and closed at Rs21.67 with a gain of 20 paisa. Azgard Nine gained 22 paisa to Rs13.94 with 12.74 million shares turnover, Oil & Gas Development Company gained Rs2.51 to Rs129.86 with 11.61 million shares turnover, and WorldCall Telecom gained nine paisa to Rs4.71 with 11.19 million shares turnover.