KARACHI: The local bourse managed to recover losses incurred over the past four days as investors turned bullish on Thursday after the central bank’s quarterly report on the state of economy, say analysts.
The Karachi Stock Exchange (KSE) benchmark 100-share index ended 0.95 per cent or 116.66 points higher at 12,359.05.
The central bank, in the report, expects a two to three per cent growth during fiscal 2011 despite devastating floods and fiscal slippages, said JS Global Capital analyst Murtaza Jafar.
A scheduled meeting between the Securities and Exchange Commission of Pakistan (SECP) and the KSE board on February 7 has given hopes for introduction of the much-awaited leverage product, added Jafar.
Foreigners were said to be buyers in banking stocks while locals were seen active in energy stocks and Lotte Pakistan PTA, said Jafar.
Oil stocks led gains with Pakistan Oilfields rising by 1.4 per cent, Pakistan Petroleum closing up 1.7 per cent and Oil and Gas Development Company increasing by Rs0.31.
“Despite closing in the negative zone, National Refinery Limited saw healthy turnover of over two million shares – the highest activity generated in this stock since October 2007 – as value-hunters take advantage after recent declines,” said Elixir Securities equity dealer Sara Shahid.
The value of shares traded during the day was Rs5.14 billion.
Lotte Pakistan PTA accounted for nearly 35 per cent of the total market volume after news that international cotton prices have touched a new peak of $1.8 per pound.
Investors built new position in Lotte Pakistan PTA on hopes that rising cotton prices bode well for PTA (pure terephthalic acid) demand, said Sara Shahid. Lotte Pakistan with 36.98 million shares traded rose Rs0.72 to close at Rs15.98.
It was followed by Azgard Nine Limited with 7.45 million shares, gaining Rs0.52 to close at Rs11.27 and Fauji Fertiliser Bin Qasim Limited with 6.26 million shares, increasing Rs1.14 to close at Rs41.37.
Published in The Express Tribune, February 4th, 2011.
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