KARACHI - Bullish activity witnessed in oversold stocks across the board on easing political concerns after federal cabinet commits on APC decisions for negotiations with TTP. The equity market on Tuesday showed upward trend and the benchmark KSE-100 share index increased by 412.87 points or 1.84 percent and the market closed at end of the day at 22790.70 points as compared to 22377.83 points previous day.
Activity remained thin cautious at KSE as investors awaited SBP policy rate decisions due next week. Oil and banking sectors invited investors interest on expectations for strong earnings outlook on expected hike in SBP discount rate, stated Ahsan Mehanti at Arif Habib Corp.
The KSE-All share index also improved by 331.63 points or 2.03 percent at end of the day and closed at 16637.90 points as compared to 16306.27 points, KSE-30 index increased by 353.63 points or 2.08 percent and closed at 17375.79 points, while KMI-30 index also showed positive trend by 601.48 points or 1.59 percent and closed at 38526.18 points. High and Low were 17416.22 and 17022.16 respectively.
Amid relieve of tension between Pak and US after drone attack as Cabinet did not take any decision on blockage of NATO supply. Benchmark index gained 1.8pc. Renewed buying interest in oil stocks like OGDC, and PPL helped index with 150 points. While Engro Corp, Engro Foods and BAFL closed at upper circuit breakers. With volume of 88 million shares BAFL witnessed healthiest activity of 11 million shares exchanged hands followed by PTC with 8.5 million shares and BoP 4 million shares. Market analyst said the volume shrank due to unknown fear among investors.  Researcher stated that Pakistan’s largest industry, textile, impressively started the current fiscal year by posting 40pc rise in profitability in 1QFY14. This was due to improved demand and better yarn margins. Further boost to the profits was provided by depreciating Pak rupee and cheaper financing rates.
Favouring fortunes resulted in improved overall textile output in 1QFY14 which can be gauged from 9.3pc YoY growth in textile exports to $3.6b. In terms of PKR, overall textile exports went up 19pcYoY to Rs368b. The same is reflected from listed textile companies’ profits which increased by Rs2.6b (40pc YoY) to Rs9.1b in 1QFY14 compared to Rs6.5b in the same period last year.