Market Watch: Bourse rises as investors accumulate stocks

KSE’s benchmark 100-share index gains 49 points.

KARACHI: The equity market closed in the positive territory on Wednesday as investors rushed to accumulate stocks.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.4 per cent or 49.49 points to end at the 12,311.04 point level.

Second tier stocks again led the volume charts as reportedly retail brokers continue to take interest in penny plays, said Elixir Securities equity dealer Nazim Abdul Muttalib.

Arif Habib Corporation closed at its upper circuit breaker of 5% on news that the company’s unlisted subsidiary Aisha Steel Mills will commence production next month, said Muttalib in a research note. “Aisha Steel also plans to announce an IPO in the near future, added Muttalib.

Trade volumes gained to 172 million shares compared with Tuesday’s tally of 148 million shares.

Fertiliser giants Engro and Fauji Fertilizer Company remained flattish with volumes of 1.8 million and 1.5 million shares, respectively.

Engro Corporation closed marginally negative at 0.74% ahead of today’s (Thursday) earnings announcement where market is betting on a bonus payout.

Kot Addu Power Company rose 3% after the independent power producer announced dismal half-year results with earning per share declining 30% to 3.07 on yearly basis.

Jahangir Siddiqui and Company was the volume leader with 29.61 million shares gaining Rs0.75 to finish at Rs9.27. It was followed by Azgard Nine with 14.58 million shares firming Rs0.42 to close at Rs6.15 and Bank of Punjab with 10.11 million shares increasing Rs0.57 to close at Rs7.08.

Foreign institutional investors were buyers of Rs115 million and sellers of Rs135 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Shares of 347 companies were traded on Wednesday. At the end of the day 173 stocks closed higher, 89 declined while 85 remained unchanged. The value of shares traded during the day was Rs3.06 billion.

Published in The Express Tribune, February 16^th, 2012.