KSE reaches highest level of the year at 8,878.64 points

KARACHI: The Karachi stock market on Wednesday continued to witness intense buying activities in the blue chips, which took the index to the highest level of the year.The blue chips were of oil, bank and fertilizer sectors.The Karachi Stock Exchange (KSE) 100-share index increased by 109.40 points or 1.25 percent to close at 8,878.64 points as compared to previous session’s 8,769.24 points. The KSE 30-share index closed at 9,553.10 with a gain of 107.08 points. The KMI 30 index closed at 12,897.13 with a surge of 3.37 points. Analysts said unabated foreign interest in the market had great influence on the trading activities. Daily trading volumes continued to be healthy manifesting investors interest in the market. The market turnover went down by 15.66 percent and traded 255.39 million shares as compared with previous session’s 302.83 million shares. The overall market capitalisation was up by 1.13 percent to close at Rs 2.588 trillion as against Rs 2.559 trillion. Out of total 380 companies, 201 closed in the positive zone, 160 in negative, while 19 remained unchanged. “Declining trend in international oil prices became an excuse for profit-taking in expensive stocks mainly of the exploration sector, while sector stocks trading at lower multiples witnessed renewed buying interest,” said analyst at Aziz Fida Husein and Co Husnein Asghar Ali. “Surge in fertilizer offtake and price per bag allowed the accumulators from the local circuit to continue building their positions as some of the listed stocks of the sector offered consistent dividend yields while long-term investors will benefit from the conglomerate having core business as fertilizer.” Provided other variables stay conducive, increase in price per bag and cement dispatches tuned the cautious accumulation to a much aggressive buying activity in the main stocks of the sector, he said and added that low priced stocks contributed to gains and turnover. “NWFP oil discovery by OGDCL, rise in local urea prices/offtake and continuing foreign interest in the market were the main reasons for the bullish trend,” said senior analyst at Shahzad Chamdia Sec Ahsan Mehanti.The KSE 100-share index opened in the green zone with a gain of 100.57 points and at the end of the day closed at 8,878.64 points with a surge of 109.40 points. Bank Alfalah was the volume leader in the share market with 32.07 million shares as it closed at Rs 12.77 after opening at Rs 12.06 making a financial gain of 71 paisas. OGDC traded 20.48 million shares as it closed at Rs 109.98 from its opening at Rs 108.29, increasing Rs 1.69. staff report