The stock market gained on the final trading session of the week as investors bought stocks on expectations of a status quo in today’s (Saturday) monetary policy.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index jumped 0.8 per cent or 95 points to end at 11,973.38 points.
Market rumours that small investors will be exempt from capital gains tax also supported the upward trend, said Arif Habib Investments Limited Director Ahsan Mehanti. The issue is expected to be discussed when the board of directors of the bourse meet President Asif Ali Zardari on Monday at the Top 25 Companies Awards in Islamabad, according to an official.
Majority of the analysts expected the central bank to keep the discount rate unchanged at 14 per cent in the monetary policy announcement.
The exploration and production sector led the pack in the second half of the trading session on news that the petroleum ministry had accorded approval to the tight gas policy with a 30 to 40 per cent increase in pricing from the 2009 petroleum policy, said JS Global Capital analyst Jawad Khan.
Oil and Gas Development Company surged 1.3 per cent followed by Pakistan Petroleum and Pakistan Oilfields gaining 1.1 per cent and 0.9 per cent, respectively.
Trade volumes improved slightly but were still at a dismal level of 44 million shares compared with Thursday’s tally of 40 million shares.
Fertiliser stocks Engro and Fauji Fertiliser jumped 0.4 per cent and 0.6 per cent, respectively, on news that gas supply will be resumed to the industry in the coming weeks.
Shares of 335 companies were traded on Friday. At the end of the day, 152 stocks closed higher, 74 declined and 109 remained unchanged. The value of shares traded during the day was Rs2.04 billion.
Bank Alfalah was the volume leader with 7.93 million shares, gaining Rs0.17 to finish at Rs10.55. It was followed by Pakistan Reinsurance with 4.57 million shares, gaining Rs0.9 to close at Rs17.14 and Lotte Pakistan PTA with 3.65 million shares, firming Rs0.2 to close at Rs14.93.
Published in The Express Tribune, May 21st, 2011.
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