Market watch: Stock market recovers slightly

KSE-100 index gains 66 points.

KARACHI: The stock market recovered slightly on Monday as investors got into action and bought shares at lower levels.

The Karachi Stock Exchange benchmark 100-share index ended 0.59 per cent or 65.7 points higher at 11,289.22.

Last week, the index shed 818 points or 6.8 per cent – the biggest weekly drop in the last 14 months.

Oil and fertiliser stocks led the advance, with Pakistan Oilfields jumping 3.7 per cent, followed by Pakistan Petroleum Limited’s 3.5 per cent gain, said JS Global Capital analyst Jawad Khan. On the contrary, index heavyweight Oil and Gas Development Company continued to slide and closed down 4.7 per cent, after it failed to announce a payout with its result – the first in the oil and gas explorer’s history, added Khan.

Pakistan State Oil witnessed renewed buying interest, gaining 2.9 per cent on expectations of a 16 per cent hike in oil prices.

Engro led the fertiliser sector’s advance, gaining 3.4 per cent, followed by Fauji Fertiliser Company’s 4.5 per cent rise on January sales data. Fertiliser sales fell 22 per cent, but profit margins increased on higher prices.

Volumes once again remained thin at 86 million shares against 157 million shares traded on Friday as investors were concerned about the deteriorating political and economic situation in the country.

Buying spree was seen across the board and stocks like DG Khan Cement and Hub Power Company closed at their upper limits.

Shares of 655 companies were traded on the first trading session of the week. At the end of the day, 190 stocks closed higher, 84 declined and 381 remained unchanged.

The value of shares traded during the day was Rs3.38 billion.

Lotte Pakistan PTA was the volume leader with 13.96 million shares, gaining Rs0.45 to finish at Rs14.53. It was followed by Arif Habib Corporation with 6.45 million shares, firming Rs0.93 to close at Rs19.9.

National Bank of Pakistan, third on the volumes chart with 5.46 million shares, attracted good volumes ahead of Tuesday’s annual earnings announcement. The scrip gained Rs1.18 to close at Rs68.19.

Published in The Express Tribune, March 1^st, 2011.