Market watch: Stocks march upwards as investor interest rises

KARACHI: The stock market marched upwards on Tuesday as hopes rose that the much-awaited leverage product will be introduced by month-end following approval given by the bourse’s board to modification in its rules.

The Karachi Stock Exchange (KSE) benchmark 100-share index ended 1.1 per cent or 131.75 points higher at 12,077.84.

The KSE’s board of directors approved changes to the proposed leverage product on Monday, inviting some fresh interest in the market, said JS Global Capital analyst Jawad Khan.

The number of shares traded rose to 97.04 million shares from 68.83 million shares traded on Monday.

Markets will be closed today (Wednesday) as the government has announced a public holiday on account of Eid Milad-un-Nabi.

Among exploration and production stocks, Pakistan Petroleum Limited saw better volume and gained 0.5 per cent while Pakistan Oilfields jumped 1.3 per cent after news of a gas discovery at Tolanj well, Tal block.

The new well will have earnings per share impact of Rs0.05 on Oil and Gas Development Company, Rs0.19 per share on Pakistan Petroleum Limited and Rs0.82 per share on Pakistan Oilfields. Fauji Fertiliser Company led the gains in fertiliser stocks by gaining 2.2 per cent to close at Rs11.91.

Among banks, MCB Bank advanced two per cent on low volumes while National Bank invited some fresh interest in anticipation of better payout in its full-year result announcement.

Shares of 370 companies were traded on Tuesday. At the end of the day, 252 stocks closed higher, 110 declined and eight remained unchanged. The value of shares traded during the day was Rs3.58 billion.

Lotte Pakistan PTA was the volume leader with 13.12 million shares, gaining Rs0.36 to finish at Rs16.29. It was followed by Nishat Chunian Power with 6.72 million shares, losing Rs0.23 to close at Rs15.88 and Nishat Chunian Limited with 5.26 million shares, firming Rs0.67 to close at Rs27.39.

Pakistan International Airlines was the top gainer for the second day in a row following resumption of operations. The stock surged 6.62 per cent to close at Rs3.06.

Published in The Express Tribune, February 16^th, 2011.