The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.01 per cent or 0.77 points to end at the 11,929.78 point level.
Pakistan Oilfields earnings announcement in morning trade was not well received by investors as half year earnings per share of Rs26.08 was below estimates, said Elixir Securities equity dealer Faisal Bilwani.
However, recovery was witnessed in late trade on expectations that earnings will likely improve significantly going forward, added Bilwani.
Trade volumes gained to 107.7 million shares compared with Wednesday’s tally of 93.4 million shares.
Engro Corporation rose to its upper limit of 5% as investors bet on better earnings in the upcoming announcement. Engro Foods also rose to its upper limit – already up 28.7% this year –as recent result brings this cheapest listed consumer goods company in the limelight with retail and institutional interest.
Textile players Nishat Mills rose 4.4% and Nishat Chunian gained 3.4% on news that World Trade Organization approved EU duty waiver on Pakistan goods.
Shares of 318 companies were traded on Thursday. At the end of the day 113 stocks closed higher, 123 declined while 82 remained unchanged. The value of shares traded during the day was Rs4.9 billion.
Jahangir Siddiqui and Company was the volume leader with 21.4 million shares gaining Rs0.29 to finish at Rs6.77. It was followed by Engro Corporation with 8.2 million shares firming Rs5.43 to close at Rs122.07 and Fatima Fertilizer Company with 6.4 million shares increasing Rs0.53 to close at Rs22.48.
Foreign institutional investors were net sellers of Rs30 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.
2012 begins with a ray of hope
The new year started off positively for the stock exchange as benchmark 100-share index gained 4.6% on a monthly basis.
The month started on a low but relief on capital gains tax (CGT) announced by the finance minister in his mid-month visit to the KSE turned fortunes around, according to a KASB Securities research note.
Despite the strong rebound, the KSE could not continue its trend of outperforming the region and emerged as an average performer, adds the note.
The trend reversal could also not change the flows of foreign funds in the positive territory as they stood as net sellers of $400,000.
Published in The Express Tribune, February 3rd, 2012.
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