Foreign investment helps market gain 82 points

Express May 28, 2010

KARACHI: Foreign investment in the KSE-100 helped stocks end higher despite a deadly attack by gunmen in Lahore that left dozens dead.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.86 percent, or 81.81 points, to end at 9,521.15 points on a turnover of 92.77 million shares.

Volumes decreased by 8.6 per cent to 95 million on Friday as compared to 104 million shares on Thursday.

The all share index exchange value had increased by 5.4 per cent to Rs4.27 billion on Friday as compared to Rs4.05 billion on Thursday.

Gunmen attacked worshippers from a minority sect in two mosques in Lahore on Friday, killing over 80 people, according to officials.

However investors were still cautious because of the upcoming budget which is due to be announced on June 5.

“The Pakistan market witnessed volatile trading activity today but support was witnessed when the market went into the red zone,” said JS Global Capital analyst Muzzamil Mussani.

“Initially we saw some selling after the attack but investors started accumulating shares at lower levels,” said chief executive at Faysal Asset Management, Asad Iqbal. He added that foreign buyers had boosted local confidence.

“Local bourse witnessed a volatile session today as the previous day’s foreign selling and the carnage in Lahore in the later half restricted investors from taking fresh positions. Furthermore the weekend and the budget announcement next week also dampened investor’s sentiment. Volumes were mainly led by low priced stocks however OGDC remained dominant in main board items,” said Topline Securities analyst, Furqan Punjani.

Trading was mixed. Out of the 384 stocks which were traded during the day, 222 were up, 141 were down.  The price of 21 stocks remained unchanged.

Among blue chips Oil and Gas Development Company (OGDC) was the volume leader with 7.1 million shares traded. Mussani pointed out that 2.1 million shares of the total volume were traded at a price of Rs133.75.

OGDC’s stock price increased by 3.3 per cent to Rs134.05, it contributed 71 points to the market rally with rumours of foreign buying pushing up the scrip.

Moreover, Pakistan State Oil remained one of the most volatile stocks today which traded in the range of Rs12 with a high and low of Rs268.99 and Rs257.0 respectively, as it closed at Rs266.43.

Published in the Express Tribune, May 2010.


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