KARACHI: The bourse witnessed renewed investor interest on Wednesday, climbing significantly after positive signals from the Nato supplies resumption front. Investors dug in on strategic levels, hoping to cash in on expected gains from the influx of Coalition Support Funds expected to follow on the heels of the government’s announcement of resumption in military cooperation with the US.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index surged 1.05% or 143.08 points to end at the 13,799.12 points level.
“The market witnessed across the board buying amid hopes that the Nato supply issue could be resolved in the meeting between the Nato commander and Pakistani officials,” reported Topline Securities equity dealer Samar Iqbal.
Trade volumes improved to 94 million shares compared with Tuesday’s tally of 58 million shares. The value of shares traded during the day was Rs2.82 billion.
“[The] fertiliser sector was very volatile over news of the Competition Commission of Pakistan’s questioning of price hikes of locally produced urea,” quoted JS Global analyst Mujtaba Barakzai. The Commission is conducting an inquiry into the operations of Fauji Fertilizer (FFC) and Fatima Fertilizer. “The commission has issued show cause notices, but despite negative news, interest was witnessed in FFC on account of good earnings in the outgoing quarter,” Barakzai noted.
Shares of 366 companies were traded on Wednesday. At the end of the day 163 stocks closed higher, 123 declined while 80 remained unchanged. Bankislami Pakistan was the volume leader with 10.24 million shares gaining Rs0.13 to finish at Rs9.35. It was followed by Bank Alfalah with 6.84 million shares gaining Rs0.37 to close at Rs17.67 and Pakistan Telecommunication Company with 6.77 million shares gaining Rs0.13 to close at Rs13.98.
In the exploration and production sector, Pakistan Oilfields (POL), the Oil and Gas Development Company, and Pakistan Petroleum increased by 0.6%, 1.3% and 1.7% respectively. Meanwhile, Pakistan State Oil, the country’s largest oil marketing entity, improved 0.9% on news of receiving Rs10 billion rupees. In the banking sector, Bank Alfalah improved 2.1% over expectations of a good payout in the upcoming corporate announcement.
Foreign institutional investors were buyers of Rs115.58 million and sellers of Rs298.45 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, June 28th, 2012.
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