Market watch: Bourse stages a comeback as fertiliser stocks rally

Benchmark KSE-100 index rises 173.29 points

KARACHI: As trading resumed on Monday after a four-day hiatus, investors rushed in droves pushing the index up by 150 points. However, foreigners continued to be net sellers, dampening sentiments at the bourse.

Rumours of stagnant gas prices pushed fertiliser stocks in the green. With fertiliser being the main driver, bulls continued to dominate the bourse.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.53% or 173.29 points to end at 32,674.04.



According to an Elixir Securities report, stocks opened positive led by gains in index-heavy oil companies that tracked recovery in global crude, while positive news flow on geo-political front after the surprise Indian PM’s visit over the weekend also helped the wider market sentiments.

“Fertiliser sector that underwent correction in the last few sessions came in the limelight after rumours circulated of no increase in gas prices. Resultantly, Fauji Fertilizer (+5%) closed at its upper price limit, while Fauji Fertilizer Bin Qasim (+4.61%) also closed higher.

“Despite reports of foreign selling, the market inched upwards with small and mid-caps seeing the most activity.”

JS Global analyst Arhum Ghous said the bulls dominated the day. “Two key players in the fertiliser sector namely FFC and FFBL were the main index movers post-deferment of gas price hikes till June 2016 announced by the premier.

“PM’s directive to complete the Bin Qasim 1,320MW coal-fired power plant by December 31, 2017 also garnered attention as it strengthened conviction over materialisation of CPEC projects (the project has significance as it is the first CPEC project to reach financial close).”

Overall, the bullish sentiment in the market was mainly in reaction to the delay in gas price hikes till June 2016, which erased earlier fears of higher inflation numbers and low profitability for key sectors like fertiliser, cement and textile.”

Trade volumes rose to 120 million shares compared with Wednesday’s tally of 105 million shares.



Shares of 330 companies were traded. At the end of the day, 157 stocks closed higher, 143 declined while 30 remained unchanged. The value of shares traded during the day was Rs7.1 billion.

TRG Pakistan was the volume leader with 11.2 million shares gaining Rs1.70 to finish at Rs35.70. It was followed by Byco Petroleum with 6.7 million shares gaining Rs1.06 to close at Rs23.03 and Sui Northern Gas Pipelines with 6.3 million shares losing Rs0.77 to close at Rs24.13.

Foreign institutional investors were net sellers of Rs154 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, December 29^th, 2015.

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