Market Watch: Bourse gains amid healthy volumes

KSE’s benchmark 100-share index rises 59 points.

KARACHI:

The stock market managed to close in the positive territory on Wednesday led by index heavyweight Oil and Gas Development Company (OGDC).

The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.47 per cent or 59.22 points to end at the 12,603.67 point level.

Except for OGDC, most of the stocks witnessed profit taking after rising by 2% in the past five trading sessions, said Topline Securities Equity Dealer Samar Iqbal. OGDC rose 1.8% to close at Rs166.22 ahead of the company’s half-yearly earnings scheduled to be announced today (Thursday).

Trade volumes fell but still stayed at a healthy level of 272 million shares compared with Tuesday’s 22-month high tally of 322 million shares.

Pakistan State Oil witnessed a rally during the first half of the session on account of implementation of the signed agreement with the banking institutions.

Banks so far have been the leading performers on higher expectation of earnings and pay outs as Askari Bank, National Bank and Habib bank increased by 4.3%, 0.5% and 4.0%, respectively. United Bank rose 4.8% to close near its upper price limit as trading volumes in the stock rose to levels not seen in the last two years as earnings announcement revived investor interest.

Foreign institutional investors were buyers of Rs259 million and sellers of Rs209 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Pakistan Telecommunication Company’s stock price fell 3% after the firm declared first half earnings which depicted a decline of 29% to earnings per share of 56.

Bank AlFalah was the volume leader with 26.19 million shares gaining Rs0.43 to finish at Rs13.88. It was followed by Jahangir Siddiqui and Company with 21.69 million shares declining Rs0.49 to close at Rs9.75 and Pace (Pak) with 18.59 million shares firming Rs0.25 to close at Rs2.16.

Published in The Express Tribune, February 23^rd, 2012.