Investors flocked to stocks offering high dividend yields as the corporate result season was under way, said JS Global Capital analyst Ahmed Rauf. Record foreign inflow of $30 million was witnessed last week.
The Karachi Stock Exchange benchmark 100-share index ended 1.18 per cent or 148.4 points higher at 12,681.94, its highest close since June 2008.
Local investors also supported the market with pre-result buying, which saw the volumes touch a nine-month high, according to dealers. Trading volume rose 5.4 per cent to 316.8 million shares compared with the preceding day’s 300.5 million shares.
Azgard Nine Limited topped the volumes with 35 million shares traded and closed at its upper limit amid talk of debt restructuring and the divestment saga coming to an end, said Rauf.
Fauji Fertiliser Bin Qasim Limited, second on the volumes chart with 24.5 million shares, ended 2.49 per cent higher at Rs42.05. The fertiliser company is due to announce its results on January 25 for the quarter ended December 31.
It was followed by Lafarge Pakistan with 20.1 million shares and its share price remained flat at Rs3.58. Lotte Pakistan PTA saw trading in 17.5 million shares losing Rs0.02 to close at Rs15.49.
The telecom sector remained in the limelight as NetSol hit its upper cap while TRG and Pakistan Telecommunication closed up five per cent and four per cent, respectively.
Engro closed down 0.97 per cent on account of profit-taking. Furthermore, Pakistan State Oil gained 2.49 per cent on news of increase in furnace oil prices by Rs1,200 per ton.
Shares of 419 companies were traded on the first trading session of the week. At the end of the day, 230 stocks closed higher, 170 declined and 19 remained unchanged. The value of shares traded during the day was Rs12.4 billion.
Published in The Express Tribune, January 18th, 2011.
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