Market watch: Bourse jumps on earnings anticipation

KSE’s benchmark 100-share index surges 193 points.

KARACHI: Investors brushed aside political tensions on Tuesday and accumulated stocks with the corporate result season around the corner.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index jumped 1.73 per cent or 192.51 points to end at the 11,305.16 point level.

Engro Corporation hit its upper circuit over rumours that substantial gas will be diverted to its new plant from the new gas find at Kunnar-Pasakhi field, said JS Global Capital analyst Jawad Khan.

Trade volumes gained to 53 million shares amid healthy local institutional participation compared with Monday’s tally of 27 million shares.

Cements closed marginally negative with Lucky Cement falling 0.3% and DG Khan Cement declining 0.5% on news of Competition Commission of Pakistan’s (CCP) action against cement makers and possible cartelisation charges. CCP on Monday inspected premises of All Pakistan Cement Manufacturers Association and Kohat Cement to impound proofs of suspected cartelisation in the sector.

Foreign institutional investors were buyers of Rs309 million and sellers of Rs306 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Energy exploration and production companies remained highly sought with Oil & Gas Development Company and Pakistan Petroleum Limited jumping 3% and 2%, respectively, over expectations of healthy earnings and payouts.

Shares of 323 companies were traded on Tuesday. At the end of the day 141 stocks closed higher, 90 declined while 92 remained unchanged. The value of shares traded during the day was Rs2.76 billion.

Engro Corporation was the volume leader with 5.98 million shares gaining Rs4.56 to finish at Rs100.45. It was followed by Lotte Pakistan PTA with 5.04 million shares firming Rs0.25 to close at Rs10.02 and SilkBank with 4.65 million shares losing Rs0.04 to close at Rs1.63.

Published in The Express Tribune, January 18^th, 2012.