Telecom bulls put the bourse on road to recovery
KARACHI: Trade volumes fell to 149 million shares compared with Wednesday’s tally of 176 million shares. The telecom sector pushed the bourse towards recovery phase after the news of official approval of establishment of the international telecom gateway.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.18% or 28 points to end at 15,306.51 point level.
Trade volumes fell to 149 million shares compared with Wednesday’s tally of 176 million shares.
“With range bound activity seen in the market, telecommunication sector remained on investors’ radar after the confirmation of the international clearing house (ICH) formation by the telecom companies,” said Samar Iqbal, analyst at Topline Securities.
The proposed ICH gateway will converge all international calls to a single technical gateway led by PTCL against the current practice of being handled by 14 long distance international (LDI) operators.
Listed telcos issued notices to the KSE regarding the implementation of the ICH. The agreement was signed by all LDI operators and is expected to come into effect from October 1, 2012, according to an AKD Securities research report.
The recovery was supported by the index heavyweight Oil and Gas Development Company which jumped 1.6%. Positive growth in earnings due to issuance of term finance certificates by the government to control the spiraling circular debt and higher international oil prices kept bullish sentiments alive for the sector, said JS Global Capital analyst Shakir Padela.
The cement sector also augmented the recovery after strong annual results posted by the industry as the two largest cement producers – DG Khan Cement and Lucky Cement – closed 2.6% and 0.9% up respectively, added Padela.
Pakistan Telecommunication Company was the volume leader with 14.5 million shares gaining 0.27 to finish at Rs18.8. It was followed by Nishat Mills with 14.3 million shares gaining Rs1.04 to close at Rs58.5 and Dewan Salman Fibre with 11.8 million shares gaining Rs0.14 to close at Rs2.42.
Shares of 351 companies were traded on Thursday. At the end of the day 134 stocks closed higher, 158 declined while 59 remained unchanged. The value of shares traded during the day was Rs4.4 billion.
Foreign institutional investors were net buyers of Rs173 million, according to data maintained by the National Clearing Company of Pakistan Limited.