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Broad-based recovery on ISE

Recorder Report

ISLAMABAD: Equities witnessed broad-based recovery on the Islamabad Stock Exchange where local financial institutions injected fresh investment in core scrips amid increase in index.

Bulls invaded the floor as the government's decision to stop institutional investment in the National Saving Schemes would attract fresh investment in stock exchanges of Pakistan.

Buying was mostly confined to utilities like Pakistan Telecommunication Company Limited, PSO and Hubco throughout the positive spell with expansion in trade volume.

ISE Network index was plus by 66.36 points as the composite index managed to move from 6,392.38 to 6,458.74 points.

The trade volume expanded to 14,349,020 shares as compared to previous turnover of 9,111,740 shares.

The horizon of trade expanded to 166 active companies as compared to 156 companies of Monday. Of the total, 84 stocks improved their worth, 46 remained glued to their overnight levels while 36 closed in negative territory.

High technology stock of Communication sector was surged by 85 paisa on a business of 12,565,500 shares as it resumed trading at Rs 31.90 and was closed at Rs 32.75. Second volume leader ICI Pakistan showed an increase of Rs 1.10 during trading of 903,500 shares. ICI opened at Rs 16.65 and was closed at Rs 17.75. Third heavyweight FFC Jordan soared by 40 paisa during trading of 200,500 shares. FFC Fertilizer started the day at Rs 13.75 and was closed at Rs 14.15. Engro Chemicals opened at Rs 87 and was closed at Rs 88.50 and PSO was plus by Rs 10.70 during trading of 184,500 shares. PSO resumed trading at Rs 233.30 and was closed at Rs 244.

Shafquat Ali Shah of Progressive Investment Management said the market started the day on a healthy note following buying spree in communication, energy and fuel sectors.

Leading investors as well as weak holders took new positions in PTCL, ICI Pakistan, PSO and Hubco. The market showed considerable recovery in the early hours of trading that ultimately boosted investor's confidence and market sentiment. The market managed to remain in plus zone throughout the day and finally closed on a positive note.

He said bullish flames leapt across the stock market after the government decision that there would be no institutional investment in the national saving schemes. This decision would definitely divert the financial institution's investment to the bourses of the country. Telecom blue chip was up on the news that the company would explore international tele markets to boost the foreign exchange reserves.

However, the government's intention to privitise the PTCL and buying orders in Hubco encouraged the genuine investors and blank sellers to return back in arena. The determination of the government to resolve IPPs issue brought fresh buying in energy sector, he added.

Banking sector moved both ways as Soneri Bank gained Rs 2, Union Bank showed an increase of a rupee, Bankers Equity soared by 70 paisa, Bank Al Habib was plus by 45 paisa, Al-Towfeek Inv. Bank gained 20 paisa.

However, Metrpolitan Bank lost Rs 1.70, Prudential Investment Bank lost 45 paisa and Crescent Investment Bank shed 25 paisa.

In fuel and energy sector, Pakistan Oilfields was minus by Rs 2, Sitara Energy lost Rs 1.40 and Kohinoor Energy showed an increase of 75 paisa, Sui Northern Gas 55 paisa, Sui Southern Gas 45 paisa, DG Khan Electric was down by 25 paisa. Mari Gas was up by Rs 105, KESC 35 paisa and Southern Electric gained 30 paisa.

Among the major losers, Lever Brothers was minus by Rs 30 as it opened at Rs 1,000 and was closed at Rs 970.