Market Watch: Stock market recovers early losses

After shedding 75 points, KSE’s 100-share index closes up 18 points.

KARACHI: The stock market started the week on a negative note as investors followed the prime minister’s fate in the Supreme Court proceedings on the contempt case.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.15 per cent or 18.40 points to end at the 12,250.00 point level.

“After the extension of the matter till February 22, the index recovered 96 points from its intra-day low of 12,154,” said JS Global Capital analyst Shakir Padela.

The Supreme Court on Monday indicted Prime Minister Yousaf Raza Gilani for contempt of court in the National Reconciliation Ordinance (NRO) implementation case

Trade volumes gained to 116 million shares compared with Friday’s tally of 107 million shares. MCB Bank continued its upward trend as the date for the announcement of it annual result was disclosed coupled with expectations of cash dividend and bonus with the final result kept investors interested in the script, said Padela.

Foreign institutional investors were net buyers of Rs138 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Pakistan State Oil was also able to gain 1% on the expectation of issuance of Term Finance Certificates to give short-term relief from the crippling circular debt.

The trading session was dominated by second tier stocks with Jahangir Siddiqui and Company closing at its upper lock followed by affiliated companies group posting healthy gains as well.

Jahangir Siddiqui and Company was the volume leader with 28.47 million shares gaining Re1 to finish at Rs8.47. It was followed by Azgard Nine with 18.95 million shares firming Rs0.96 to close at Rs5.93 and JS Bank with 6.12 million shares increasing Rs0.63 to close at Rs3.92.

Published in The Express Tribune, February 14^th, 2012.