KARACHI
Shares market on Monday rallied amid lower than expected CPI announcement. CPI for May increased to 3.16pc.
The KSE-100 index rose by 506.59 points or 1.53pc to 33,563 points after 3-weeks. While volumes declined by 14pc from Friday’s level to 261m shares (Rs.11.6b/ $116m).
The market opened the week on a strong note up 1.5pc as liquidity trumped concerns over the budget with local institutions buying across the board. HBL rose 4.7pc and UBL 3.2pc led the banking sector as CPI inflation clocked in at 3.16pc in May vs 2.11pc for April showing an uptick vs. last month. Engro gains 4.7pc rallied on rumours that they might get a stay order on GIDC from the courts and the stock also was added to the Shariah Compliant KMI-30 index. K-Electric 5.5pc gained on news that the integrated utility closed a Sukuk issue of Rs22b which will be used to increase maturity period of their debts and bring down interest cost, commented analyst Ovais Ahsan at JS Global.
Cement stocks rallied in expectation of higher development expenditure approval coupled with Government’s plan to consult with the South African government to resolve the anti-dumping duties to Pakistan exporters.
Textile sector also saw renewed interest in anticipation of favourable policies in the upcoming budget. Institutional support helped Engro gain 5pc, HBL 4.7pc and UBL 3pc, observed Samar Iqbal at Topline Securities. Analyst Ahsan Mehanti said, bullish activity witnessed amid higher trades in the pre-budget rally at KSE on strong institutional interest in selected stocks across the board. Record low CPI Inflation data for May'15 at 1.05pc MoM, record allocations of Rs580b for PSDP in the federal budget and hike in local POL prices played a catalyst role in bullish activity at KSE,