Market slightly higher as investors buy cheap

KARACHI: Stocks ended higher on Tuesday after falling to a near two-month low the previous day as investors accumulated cheap shares at lower levels, dealers said.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.48 per cent, or 48.28 points, to end at 10,082.04. “Investors, both local and foreign, bought shares at lower levels as they reached attractive levels,” said Asad Iqbal, chief investment officer at Faysal Asset Management Ltd. The KSE index fell 2.32 per cent to 10,033.76 on Monday, a near two-month low, because of declining international oil prices and falls in world markets.

Dealers said local investors were also encouraged on Tuesday by net buying by foreign investors the previous day, despite a global sell-off on worries about the euro zone. According to official data, net inflow of foreign portfolio investment in the stock market was $476,165 on Monday. “The market opened on a negative note on Tuesday, at one point testing the psychological 10,000-point barrier, but it is from there we saw renewed buying interest from investors,” said Faiza Naz, an analyst at JS Global Capital.

Tuesday’s trade volume rose 15 per cent to 85 million shares from Monday’s tally of 74 million shares. Second-tier stocks were the volume leaders during the day while some activity in the oil, cement, fertiliser and banking sectors was also witnessed. Total exchange value stood at Rs3.52 billion. During the day’s trade, 187 stocks closed higher, 193 declined and 26 remained unchanged in value.

Lotte Pakistan (KSE: LOTPTA) was the volume leader with 10.03 million shares losing Rs0.19 to close at Rs10.05. Jahangir Siddiqui Company (KSE: JSCL) came second with 6.73 million shares losing Rs0.12 to close at Rs15.7. Arif Habib Securities (KSE: AHSL) finished third with 5.88 million shares losing Rs1.46 to close at Rs40.16. Pakistan State Oil (KSE: PSO) and Pakistan Oilfield (KSE: POL) witnessed some recovery from yesterday’s loss, as stocks gained two per cent and 2.2 per cent respectively, said Faiza Naz.

Pakistan Telephone Cables (KSE: PTEC) was the KSE-100 top gainer of the day, its share price rising 5.26 per cent to Rs3. Bestway Cement (KSE: BWCL) was in the losers list dropping five per cent to Rs19. Bank of Punjab (KSE: BOP) closed in the red, its share price shedding 3.85 per cent to close at Rs14.5.

Published in the Express Tribune, May 19th,  2010.