Market watch: Approval of leverage product sparks investor sentiment
KSE gains 178 points to close at 12,459 on Thursday after aggressive buying due to news of the MTS being approved.
KARACHI:
News of the margin trading system (MTS) being approved by the laws ministry led to aggressive buying at the local bourse.
The benchmark 100-share index at the Karachi Stock Exchange (KSE) gained 178.2, or 1.45 per cent, to close at 12,459.44 points.
“After an unexciting start, equities witnessed a burst of activity to close 178 points up with impressive volumes. The driving force behind this spark was the announcement of approval of the margin trading product by the law ministry,” commented Sara Shahid from Elixir Securities.
Volumes on Thursday jumped to 229.5 million – up almost 40 per cent from the number of shares traded in the preceding session.
Shares of 409 companies were traded on Wednesday. At the end of the day, 215 stocks closed higher, 169 declined and 25 remained unchanged. The value of shares traded during the day swelled to Rs11.65 billion.
Lotte Pakistan PTA (LOTPTA) led the volumes with more than 59 million shares traded, accounting for one-fourth of the total trade volume. “LOTPTA stood as the volume leader as international PTA prices touched a new high of $1,325 per ton,” commented Murtaza Jafar from JS Global Capital. The company’s scrip strengthened Rs0.96 to close at Rs15.5 per share.
DG Khan Cement (DGKC) followed with 25.5 million shares changing hands. The cement company’s stock gained 2.27 per cent to end trade at Rs31.02 per share. “DGKC also performed well with rising volumes as its portfolio value is directly linked with MCB Bank’s price,” highlighted Samar Iqbal from Topline Securities.
Fauji Fertiliser Bin Qasim came in third. “Foreign institutional investors were rumoured buyers in cement and energy scrips, whereas locals were buyers in banking stocks,” pointed out Murtaza Jafar from JS Global Capital.
Published in The Express Tribune, January 14th, 2011.
News of the margin trading system (MTS) being approved by the laws ministry led to aggressive buying at the local bourse.
The benchmark 100-share index at the Karachi Stock Exchange (KSE) gained 178.2, or 1.45 per cent, to close at 12,459.44 points.
“After an unexciting start, equities witnessed a burst of activity to close 178 points up with impressive volumes. The driving force behind this spark was the announcement of approval of the margin trading product by the law ministry,” commented Sara Shahid from Elixir Securities.
Volumes on Thursday jumped to 229.5 million – up almost 40 per cent from the number of shares traded in the preceding session.
Shares of 409 companies were traded on Wednesday. At the end of the day, 215 stocks closed higher, 169 declined and 25 remained unchanged. The value of shares traded during the day swelled to Rs11.65 billion.
Lotte Pakistan PTA (LOTPTA) led the volumes with more than 59 million shares traded, accounting for one-fourth of the total trade volume. “LOTPTA stood as the volume leader as international PTA prices touched a new high of $1,325 per ton,” commented Murtaza Jafar from JS Global Capital. The company’s scrip strengthened Rs0.96 to close at Rs15.5 per share.
DG Khan Cement (DGKC) followed with 25.5 million shares changing hands. The cement company’s stock gained 2.27 per cent to end trade at Rs31.02 per share. “DGKC also performed well with rising volumes as its portfolio value is directly linked with MCB Bank’s price,” highlighted Samar Iqbal from Topline Securities.
Fauji Fertiliser Bin Qasim came in third. “Foreign institutional investors were rumoured buyers in cement and energy scrips, whereas locals were buyers in banking stocks,” pointed out Murtaza Jafar from JS Global Capital.
Published in The Express Tribune, January 14th, 2011.