KSE index up by 43 points ahead of result announcement season

KARACHI: The Karachi stock market closed higher on the first day of the trading week Monday on buying activity ahead of result announcement season for June closing while investors remained optimistic for early announcement of leverage products.

The Karachi Stock Exchange (KSE) 100-share index gained 43.13 points or 0.60 percent to close at 7,206.17 points as compared to 7,163.04 points of the previous trading session.

The KSE 30-share index surged 37.16 points and closed at 7,640.24 points as compared with 7,640.24 points.

The KMI 30 index increased by 29.12 points to close at 10,701.79 points as against 10,672.67 points.

Analysts said the market opened on a positive note and this trend went on for the rest of the session. Investors focused on cement, banking and telecom sectors.

The market turnover went up by 37.22 percent and traded 95.74 million shares as compared to previous session’s 152.66 million shares. The overall market capitalisation surged 0.66 percent to close at Rs 2.134 trillion as compared with Rs 2.120 trillion. Out of total 303 companies, 145 closed in the positive zone, 143 in negative, while 15 remained unchanged.

“Announcement of emergent board meeting by PTC for entitlement invited renewed buying activity in PTC,” said analyst at Aziz Fida Husein and Co Husnein Asghar Ali. “OGDC and PPL are expected to get out of the way with dividend announcement in the year-end results to support the government’s fiscal issues.”

Likely hood of reduction in discount rate by 150-200 bps in the upcoming monetary policy announcement added to the demand of dividend paying stocks as buying spree in the stocks not only allowed the turnover to keep ticking, but the heavyweights PTC, PPL and OGDC allowed the 100-share index to maintain a positive posture, he added.

Although, not an ultimate solution, the talks of activating the deliverable forward is at least a sep ahead to address the leverage issue at the market.

“Buying activities were witnessed during major part of the session,” said senior analyst at Shahzad Chamdia Sec Ahsan Mehanti. “PTCL announcement for shareholder entitlements, positive result outlook in cement, oil and fertilizer sectors, continued foreign interest played a catalyst role for a positive close.”

The KSE 100 index opened in the green zone with a gain of 19.16 points and at the end of the day closed at 7,206.17 points with a gain of 43.13 points. link...