Fertiliser stocks carry index above 12,000 points
Trading volume surges to 107 million shares.
KARACHI:
Equity prices bounced back at the Karachi Stock Exchange (KSE) on Wednesday on the back of renewed interest from foreign funds.
The benchmark KSE-100 index climbed 1.6 per cent or 188 points to end the day above the psychological hurdle of 12,000 points. Positive sentiments prevailed in the market from the start of the day’s trade and successive advances helped the index close at 12,128 points.
Market participation improved, taking the trading volume to 107 million shares, compared with Tuesday’s dismal volume of 54 million shares.
The fertiliser sector remained in the limelight, as investors responded positively to news of the impending listing of American depository receipts of Fatima Fertilisers at the New York Stock Exchange.
“Foreign funds were largely active in the fertiliser sector,” said Topline Securities equity dealer Samar Iqbal, adding, “Engro and Fauji Fertiliser ended the day at upper caps after gaining five per cent during the session.”
Arif Habib Investments Director Ehsan Mehanti opined, “Assurances from the president to comprehensively address differences between Pakistan Peoples Party and Muttahida Qaumi Movement let investors breathe easy and turn their attention back to attractive valuations in the market.”
Mehanti added, “Renewed foreign interest has been witnessed immediately after the completion of Pakistan Day Conference in New York.” The conference presented foreign investors with the opportunity to interact with representatives of some of the country’s biggest listed companies.
Experts have pointed out that the launch of securities lending will introduce short selling to the local bourses, a trading option that has so far been banned at the exchanges. While the introduction is expected to provide better price discovery, experts point out that it is a powerful tool for bears who have traditionally been overpowered by bulls in leveraged markets.
Fauji Fertiliser Bin Qasim was the volume leader with 7.71 million shares, gaining Rs0.95 to finish at Rs43.72. It was followed by Fatima Fertiliser with 7.7 million shares, gaining Rs0.44 to close at Rs12.35 and Lotte Pakistan PTA with 6.81 million shares, gaining Rs0.24 to close at Rs15.83.
Published in The Express Tribune, March 10th, 2011.
Equity prices bounced back at the Karachi Stock Exchange (KSE) on Wednesday on the back of renewed interest from foreign funds.
The benchmark KSE-100 index climbed 1.6 per cent or 188 points to end the day above the psychological hurdle of 12,000 points. Positive sentiments prevailed in the market from the start of the day’s trade and successive advances helped the index close at 12,128 points.
Market participation improved, taking the trading volume to 107 million shares, compared with Tuesday’s dismal volume of 54 million shares.
The fertiliser sector remained in the limelight, as investors responded positively to news of the impending listing of American depository receipts of Fatima Fertilisers at the New York Stock Exchange.
“Foreign funds were largely active in the fertiliser sector,” said Topline Securities equity dealer Samar Iqbal, adding, “Engro and Fauji Fertiliser ended the day at upper caps after gaining five per cent during the session.”
Arif Habib Investments Director Ehsan Mehanti opined, “Assurances from the president to comprehensively address differences between Pakistan Peoples Party and Muttahida Qaumi Movement let investors breathe easy and turn their attention back to attractive valuations in the market.”
Mehanti added, “Renewed foreign interest has been witnessed immediately after the completion of Pakistan Day Conference in New York.” The conference presented foreign investors with the opportunity to interact with representatives of some of the country’s biggest listed companies.
Experts have pointed out that the launch of securities lending will introduce short selling to the local bourses, a trading option that has so far been banned at the exchanges. While the introduction is expected to provide better price discovery, experts point out that it is a powerful tool for bears who have traditionally been overpowered by bulls in leveraged markets.
Fauji Fertiliser Bin Qasim was the volume leader with 7.71 million shares, gaining Rs0.95 to finish at Rs43.72. It was followed by Fatima Fertiliser with 7.7 million shares, gaining Rs0.44 to close at Rs12.35 and Lotte Pakistan PTA with 6.81 million shares, gaining Rs0.24 to close at Rs15.83.
Published in The Express Tribune, March 10th, 2011.