Market Watch: Volatility continues as market gains 32 points

KARACHI:

Equities witnessed a volatile session on Wednesday, with the index closing marginally above 11,900-point mark amid better volumes.

The Karachi Stock Exchange (KSE) benchmark 100-share index rose 0.27 per cent or 31.8 points to end at the 11,933.17-point level.

CPI inflation numbers for March being recorded at 13.16 per cent, compared with the corresponding period of the preceding year, against 12.91 per cent last month was ignored by investors, who remained active throughout the day, according to Elixir Securities analyst Nazim Abdul Muttalib

The analyst expected market volatility to continue for the next couple of sessions, with improved local sentiment on the back of continued foreign buying and a gradual increase in margin trading positions.

Additionally, David Cameron’s visit to Pakistan, accompanied by his announcement to pledge £650 million for education, and increase bilateral trade to £2.5 billion pounds by 2015 continued to have a positive impact on investor sentiments, said JS Global Capital analyst Mujtaba Barakzai.

Cement and fertiliser stocks remained in the limelight, while the overall banking sector gained.

UBL stood as the best performer in the sector on expectations of a strong result for the first quarter, he added. The scrip rose Rs0.49 to close at Rs64.51.

Trade volumes rose to 88.3 million shares, compared with Tuesday’s tally of 74.13 million shares.

Bank Alfalah was the volume leader with 7.93 million shares, gaining Rs0.4 to finish at Rs10.75. It was followed by Lotte Pakistan PTA with 5.2 million shares, losing Rs0.01 to close at Rs15.86 and JS Value Fund with 3.71 million shares, gaining Rs0.22 to close at Rs5.73.

Published in The Express Tribune, April 7^th, 2011.