Market watch: Bulls take over stock market after a breather
The Karachi Stock Exchange benchmark 100-share index ended 0.69 per cent higher at 12,455.75 points.
Oil and Gas Development Company – the heavyweight of the index – led the oil stock rally by gaining 1.1 per cent followed by Pakistan Petroleum Limited which rose 1.2 per cent and Pakistan Oilfields which increased 0.6 per cent.
Overall activity in the broader market remained dull with focus limited to select stocks, said Elixir Securities equity dealer Sara Shahid.
Volumes increased slightly but remained at a paltry 137 million shares compared with Monday’s 109 million shares.
Dealers said investors were cautious ahead of Saturday’s monetary policy announcement, which will set the policy rate for the next two months. In the last review in November, the central bank increased the key policy rate by 50 basis points to 14 per cent.
Fauji Fertiliser Bin Qasim Limited was the second highest traded scrip but closed flat on profit-taking after the company announced an increase of 70 per cent in net profits along with Rs3.5 per share cash dividend for 2010. The stock fell Rs0.04 to end at Rs41.82.
Lotte Pakistan PTA led the volumes and the gainers’ chart as PTA (pure terephthalic acid) prices reached $1,450 per ton from $1,370 per ton last week and investors continued to bet on higher earnings and payout by the company. It is scheduled to announce results on Wednesday. The scrip jumped 5.51 per cent to close at Rs15.88.
Renewed buying interest was seen in Engro Corporation after it announced that it is acquiring an international food company. The company scrip gained 2.4 per cent to close at Rs214.88.
MCB Bank also gained 1.5 per cent to Rs232.4 on anticipation of better results and rumours of foreign buying.
Shares of 388 companies were traded on Tuesday. At the end of the day, 192 stocks closed higher, 177 declined and 19 remained unchanged. The value of shares traded during the day was Rs5.3 billion.
Published in The Express Tribune, January 26th, 2011.
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