KARACHI: The stock market bounced back in style on Tuesday as Pakistan seems to be in the driving seat in Pak-US ties and recovery in regional markets.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index surged 1.92 per cent or 266.34 points to end at the 14,142.08 point level after shedding 373 points last week.
Despite intense pressure and Nato’s public call for reopening supply routes through Pakistan in a summit declaration, President Asif Ali Zardari made no promises in the Chicago summit.
Major oil, banking and fertiliser stocks rebounded which helped the market close above the psychological 14,000 point level.
Trade volumes more than doubled to 179 million shares compared with Monday’s tally of 81 million shares.
Engro Corporation and Fatima Fertilizer hit their upper limits of the day despite news that the government has finalised a deal to import 100,000 tons of urea, a negative move for local manufacturers.
Lucky Cement and DG Khan Cement also hit upper circuit breaker caps during the day after expectations that the government will increase the size of the Public Sector Development Programme to Rs850 billion in the upcoming budget, said analysts.
Foreign institutional investors were net buyers of Rs90.7 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.
Shares of 373 companies were traded on Tuesday. At the end of the day 226 stocks closed higher, 76 declined while 71 remained unchanged. The value of shares traded during the day was Rs5.26 billion.
Jahangir Siddiqui and Company was the volume leader with 19.70 million shares gaining Rs0.57 to finish at Rs16.91. It was followed by Pakistan Telecommunication Company with 17.25 million shares firming Rs0.86 to close at Rs16.02 and DG Khan Cement with 14.29 million shares increasing Rs1.64 to close at Rs41.92.
Published in The Express Tribune, May 23rd, 2012.