KARACHI - Bullish activity witnessed at KSE on Friday amid record trades led by cement, power sector stocks on speculations ahead of Chinese President’s visit to Pakistan, likely to ink $46b infrastructure and power project deals.
The benchmark KSE0-100 rose by 1.5pc or 498.29 points to close at 33,234.73 points after 6-week. Volumes traded of 400m shares, not seen since Dec 03 2014. Value of Rs.19b/ $189m also rose to 10-week high.
Oil stocks also joined the bandwagon on further appreciation in international oil prices. OGDC gained 2.5pc, PPL 4pc and POL 2pc. Long awaited visit of Chinese President expected on Monday brought across the board buying at local bourse. As per news, worth of $46b projects are expected to be signed.
Euphoria was seen in cement stocks as investors believe that major developments project will be signed between Pak-China. LUCK up 5pc, FCCL closed 5pc up, DGKC 4pc up.
Impressive March results of HMB and SNBL set high hopes of better March earnings for other banks. MCB closed 4.4pc up, UBL rallied 2pc. While sell off in HBL was seen (closed 1.4pc down) after investors received their shares of secondary offering and wanted to cash out the profit. Just to remind HBL secondary offering was at Rs.168/share, observed Samar Iqbal at Topline Securities. Supreme Court decision against Govt review petition of GIDC levy positively impacts the sentiments. Moody’s statement on HBL sell off to foreign investors as credit positive and surge in global crude oil prices played a catalyst role in bullish activity at KSE, stated analyst Ahsan Mehanti.
In its weekly report, JS Global states, the bulls dominated at the Karachi Stock Exchange (KSE), as the benchmark KSE-100 index rose 2.7pc WoW to close at 33,235 points with trading volumes averaging 23pc WoW higher at 296m shares/day. Investors took optimism from the Finance Minister’s interview hinted at a possible discount rate cut in the upcoming Monetary Policy in May, Chinese President’s visit next week and Moody’s highlighting HBL’s divestment as a credit positive for Pakistan’s economy.
Oil refineries rallied during the outgoing week on strong financial results for 3QFY15 and expectations of improving GRMs. Foreigners too turned net buyers of $7.4m vs. their net selling of $6.4m in the preceding week.