Market watch : Renewed investor confidence lifts bourse

KSE-100 index jumps 235 points.

KARACHI:

Renewed investor confidence spurred a rally at the stock market on Thursday after assurance by US officials and Moody’s Investors Service about no imminent withdrawal of foreign aid.

The Karachi Stock Exchange (KSE) 100-share index jumped 2.01 per cent or 234.64 points to end at 11,906.69 points.

Remarks from Moody’s Investors Service about no chances of imminent foreign aid withdrawal and sovereign rating revision provided relief to investors, said Topline Securities equity dealer Samar Iqbal.

Also, positive statements from US officials maintaining that Pakistan’s cooperation was vital for the success of the operation against terrorism supported the market.

Buying spree was seen across the board, especially in the oil sector. Oil and Gas Development Company (OGDCL) closed at its upper circuit breaker on the back of foreign accumulation of the stock. “OGDCL alone contributed more than 100 points to the total gain of 235 points in KSE-100 index,” said Iqbal.

National Bank of Pakistan closed up 0.44 per cent at Rs50.16 despite talk of foreign funds dumping the stock for the third consecutive session, according to a research note of Elixir Securities.

However, these developments failed to bring heavy volumes in the market. Trade volumes fell to 58.32 million shares compared with Wednesday’s tally of 89.1 million shares.

Shares of 356 companies were traded on Thursday. At the end of the day, 179 stocks closed higher, 80 declined and 97 remained unchanged. The value of shares traded during the day was Rs2.13 billion.

Lotte Pakistan PTA was the volume leader with 8.43 million shares, gaining Rs0.48 to finish at Rs15.65. It was followed by DG Khan Cement with 5.07 million shares, gaining Rs0.78 to close at Rs2.58 and National Bank of Pakistan with 2.46 million shares, firming Rs0.22 to close at Rs50.16.



Published in The Express Tribune, May 6^th, 2011.