Market watch: Stock market gains 91 points

KARACHI: The stock market gained 91 points on Wednesday as investors accumulated shares before the launch of a margin trading system, according to analysts.

The Karachi Stock Exchange (KSE) benchmark 100-share index ended 0.78 per cent or 90.73 points higher at 11,699.16.

Finance Minister Hafeez Shaikh is expected to visit the stock exchange to launch the margin trading system on March 5.

Stocks appeared to be heading for a day of broad losses in early trade as volumes had dried up after Tuesday’s strong pullback, but an afternoon recovery of the oil sector helped the index rebound for a decent finish.

Pakistan Oilfields (POL) led the rally on renewed buying interest. Field operator MOL’s optimistic production outlook – which is likely to push POL’s earnings per share to as high as Rs65 by fiscal 2013 – helped the upward move, said Topline Securities equity dealer Samar Iqbal.

National Bank of Pakistan (NBP) stayed at its upper limit as investors were excited over the healthy payout announcement. NBP announced a final cash dividend of Rs7.5 for every Rs10 share and a bonus payout in proportion of 25 shares for every 100 shares along with its 2010 results on Tuesday.

Trading volume fell to 143.3 million shares compared with preceding day’s tally of 153 million shares.

Shares of 655 companies were traded on Wednesday. At the end of the day, 137 stocks closed higher, 132 declined and 386 remained unchanged. The value of shares traded during the day was Rs5.43 billion.

NIB Bank was the volume leader with 19.95 million shares, losing Rs0.33 to finish at Rs2.27. It was followed by Lotte Pakistan PTA with 17.1 million shares, gaining Rs0.14 to close at Rs15.67 and TRG Pakistan with 13.94 million shares, increasing Rs0.66 to close at Rs3.31.

Published in The Express Tribune, March 3^rd, 2011.