Bullish activity was witnessed at the Karachi stock market on Thursday, after positive investor interest in global bourses and record earnings announcements in the domestic oil and gas sector.
The Karachi Stock Exchange (KSE) 100-share index surged 1.52 per cent or 178.53 points to end at 11,923.59 points.
Equities continued their upward drive, spurred by local buying in the oil sector. Impetus was provided by the Oil and Gas Development Company (OGDC), which was aggressively sought and closed at its upper limit, due to talk that the company had received a much-needed payment of its dues, releasing pressure off its balance sheet, said Elixir Securities analyst Sara Shahid.
Foreign interest was also high due to higher global commodity prices, after US Brent crude crossed $124 per barrel.
Trade volumes remained flat, being recorded at 71.12 million shares compared with the previous day’s tally of 72.97 million shares.
Banks were in the green due to expectations of healthy corporate earnings. MCB Bank and National Bank gained during trade, with financial results of both banks expected in coming days. Analysts believe the banking sector will declare healthy earnings on the back of lower provisions, higher net interest margins and deposits growth.
The cement sector also reflected investor interest amid news that India had approved import of cement from Pakistan. Additionally, the government is expected to announce the ground-breaking ceremony of much-awaited Diamer Bhasha Dam, which will increase local demand for cement, said JS Global Capital analyst Murtaza Jafar.
With the market having gained over 300 points in two days in the absence of any major triggers, analysts expect the index to cross 12,000 points this week.
Shares of 358 companies were traded on Thursday. At the end of the day, 141 stocks closed higher, 125 declined and 92 remained unchanged. The value of shares traded during the day was Rs4.78 billion.
Nishat Mills was the volume leader with 5.84 million shares, gaining Rs1.54 to close at Rs65.63. It was followed by National Bank with 5.11 million shares, gaining Rs0.46 to close at Rs54.15 and Fauji Fertiliser Bin Qasim with 4.6 million shares, losing Rs0.26 to close at Rs41.71.
Published in The Express Tribune, April 22nd, 2011.
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