Market Watch: Bourse jumps as activity surges to six-week high

KSE’s benchmark 100-share index climbs 255 points.

KARACHI: Stock market gained on Tuesday as activity rose to six-week high following some positive triggers, a sight not seen lately at the market.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index surged 2.3% or 255.01 points to end at 11,338.04 point level.

Strong rumours resurfaced over change in capital gains tax collection methodology for individual investors with some hinting at a deduction of additional tax, said Elixir Securities equity dealer Faisal Bilwani.

The KSE board is widely rumoured to be sending proposals and engaged in meeting with FBR officials on the issue.

Trade volumes more than doubled to a six-week high of 78 million shares compared with Monday’s tally of 37 million shares.

Engro Corporation fortunes finally turned around with the stock closing at its upper limit of the day with many betting that foreign selling in the stock is now over. Counterpart Fauji Bin Qasim Limited, the country’s sole di-ammonium phosphate (DAP) manufacturer, also rose 5% to its upper limit hit upper lock on recovery in DAP prices.

Oil advance was led by Pakistan Oilfields and Oil and Gas Development Company gaining 1.3% and 3.6%, respectively, after operator MOL Pakistan announced a discovery of 1,296 barrels of oil per day and 30 mmscf of gas per day in Manzalai-9, Tal Block, Khyber-Pakhtunkhwa.

MCB Bank was by far the best performer among banks over expectations of better earnings and a payout along with full year results. The stock jumped 2.5% to close at Rs140.7.

The value of shares traded during the day was Rs3.13 billion.

WorldCall Telecom was the volume leader with 12 million shares losing Rs0.03 to finish at Rs0.81. It was followed by Jahangir Siddiqui and Company with 10.9 million shares declining Rs0.08 to close at Rs4.19 and Engro Corporation with 6.3 million shares gaining Rs4.59 to close at Rs96.56.

Foreign institutional investors were gross buyers of 74 million and sellers of 219 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, December 21^st, 2011.