Market watch: Stocks rally on disbursement of CSF funds

Index gains 51 points at the close of the week.


Our Correspondent December 28, 2012
Trade volumes improved marginally to 154 million shares compared with Thursday’s tally of 152 million shares.

KARACHI: The stock market witnessed a broad-based rally on the last trading day of the week, helping the index gain some more ground ahead of the weekend.

“Fauji Fertilizer’s bid for Askari Bank, higher global commodities, Oil and Gas Development Company’s announcement for an increase in wellhead gas price of the Qadirpur gas field and stronger earnings outlook for oil, textile and cement sectors played a catalyst role in bullish sentiments at the Karachi Stock Exchange, despite concerns for security situation in the country,” said Arif Habib Corp analyst Ahsan Mehanti.

“Pakistan equities managed a positive close ahead of the weekend […] as news of a military-related payment by the US helped confidence,” added Faisal Bilwani, an analyst at Elixir Securities. The US disbursed another tranche of $688 million under the Coalition Support Fund on Friday.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index climbed 0.30% or 50.87 points to end at the 16,943.19 points level. Trade volumes improved marginally to 154 million shares compared with Thursday’s tally of 152 million shares. The value of shares traded during the day was Rs3.66 billion.

“Stocks were mostly flows driven, with small caps leading volumes charts,” continued Bilwani. “Askari Bank (up 3.9%) closed higher on hopes of an announcement of its acquisition price. The Fauji Fertilizers board, which is part of the acquirer’s consortium, met today: however, no details of the acquisition were revealed.”

Shares of 360 companies were traded on Friday. At the end of the day, 166 stocks closed higher, 143 declined while 51 remained unchanged. Pakistan International Airlines was the volume leader with 20.27 million shares gaining Rs0.63 to finish at Rs4.43. It was followed by Byco Petroleum with 18.63 million shares gaining Rs0.70 to close at Rs13.92 and Karachi Electric Supply Company with 11.39 million shares gaining Rs0.27 to close at Rs5.94.

“Engro Foods (up 2.2%), that is up over 335% year-to-date, tested the mega Rs100 per share level, but closed with trimmed gains,” reported Bilwani. “Karachi Electric Supply Company (up 4.8%) was high on the volume leaders list as the stock gained on a technical bounce back.”

Foreign institutional investors were buyers of Rs149.70 million and sellers of Rs568.08 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, December 29th, 2012.          

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