Market watch: KSE range-bound after two days of profit-taking

Trade volume improved to 143.16 million shares – up more than 19 per cent from Tuesday.

Express January 12, 2011

KARACHI: A buying spree by local and foreign fund managers helped the local bourse sustain slight gains amidst a shaky trading session, according to analysts.

The benchmark 100-share index at the Karachi Stock Exchange (KSE) rose 14.03 points, or 0.11 per cent, to close at 12,281.24 points.

Nonetheless, profit-taking was witnessed at the exchange, most noticeably in Engro – down 1.7 per cent – and the Oil and Gas Development Company (OGDC). The OGDC scrip continued its downward slide for the third day in a row, falling 1.7 per cent on Wednesday to close at Rs171.13 per share. “A mild start in the early morning couldn’t keep away a mid-session selling effort that threatened to steal gains, but support at the neutral line helped stocks rebound and end decently,” commented Sibtain Mustafa from Elixir Securities.

Shares of 419 companies were traded on Wednesday. At the end of the day, 194 stocks closed higher, 197 declined and 28 remained unchanged. The value of shares traded during the day jumped to Rs9.45 billion.

Trade volume also improved to 143.16 million shares – up more than 19 per cent from Tuesday.

DG Khan Cement (DGKC) came in first on the volume leaders board with 16.55 million shares exchanging hands during trade. The scrip strengthened almost 1.5 per cent to close at Rs30.33 per share. “DGKC remained the volume leader in hopes that the rising price of MCB Bank bodes well for DGKC,” commented Samar Iqbal, a local equity dealer.

Fauji Fertiliser Bin Qasim followed with a turnover of 15.5 million. The fertiliser company’s stock gained Rs0.83 to end trade at Rs39.19 per share.

Lotte Pakistan PTA came in third. With 13.5 million shares traded, the stock fell Rs0.02 to close at Rs14.54.

“MCB came in with a strong buy after locals bet on a higher payout and healthy results,” added Sibtain Mustafa. The bank’s stock advanced 4.4 per cent to close at Rs238.68 per sha

“Foreign institutional investors were rumoured sellers in energy scrips, whereas locals were buyers of banking and fertiliser stocks,” highlighted Murtaza Jafar from JS Global Capital.

Published in The Express Tribune, January 13^th, 2011.