KARACHI:
The stock market continued its upward rally on Monday as investor interest rose on higher fertiliser prices and news of possible resolution of circular debt.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index jumped 2.66 per cent or 307.21 points to end at 11,868.88 points.
News that Engro raised urea prices by Rs400 per 50kg bag due to higher than expected gas curtailment invited some fresh buying that took the stock to its upper circuit breaker, said Elixir Securities equity dealer Sibtain Mustafa.
Fauji Fertilizer Company and Fatima Fertilizer also remained in the limelight in anticipation that they will also increase prices in the near future, added Mustafa. Higher fertiliser prices are expected to protect margins and push up profits of the companies.
News reports about the petroleum ministry’s measures to settle the energy sector’s circular debt by taking all stakeholders on board also lifted investor sentiment.
Pakistan State Oil, Oil and Gas Development Company, Attock Refinery and National Refinery closed at their upper circuit breakers on the back of expectations of a solution to the circular debt issue.
Trade volumes rose to 101 million shares compared with Friday’s tally of 81 million shares.
With index up 6.1% in two days, profit-taking and volatility is expected to hit the market, added Mustafa.
Foreign institutional investors were highly active as they bought Rs217 million and sold Rs371 million worth of shares, according to data compiled by the National Clearing Company of Pakistan Limited.
Shares of 333 companies were traded on the first trading session of the week. At the end of the day, 165 stocks closed higher, 83 declined and 85 remained unchanged. The value of shares traded during the day was Rs4.74 billion. Jahangir Siddiqui and Company was the volume leader with 15.5 million shares, gaining Re1 to finish at Rs5.81. It was followed by Azgard Nine with 8.75 million shares, firming Rs0.46 to close at Rs4.29 and Fauji Fertilizer Bin Qasim Limited with 8.54 million shares, increasing Rs2.57 to close at Rs62.47.
Published in The Express Tribune, November 1st, 2011.
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