Market watch: Stocks surge amid healthy volumes

Benchmark KSE-100 index gains 103 points.

KARACHI:

Equities started off on a slow note but witnessed a burst of activity on Tuesday to close above the 12,300 points level after a four-month gap.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.85 per cent or 103.34 points to end at 12,314.99 point level.

The rally was led by Pakistan Oilfields that closed at its upper circuit and generated impressive volumes on the back of yesterday’s news of discovery at Domial well, Ikhlas block, said Elixir Securities equity dealer Sara Shahid. The stock jumped five per cent to end at Rs359.47.

The discovery shall raise Pakistan Oilfields oil and gas production by 16% and 9%, respectively and profits by at least ten per cent. Trade volumes firmed to 100 million shares compared with Monday’s tally of 96 million shares.

Banking stocks remained in the limelight led by MCB Bank gaining 1.2 per cent and followed by Allied Bank up 3.1 per cent as corporate tax rate remained unchanged at 35 per cent contrary to market rumours of an increase in the budget.

Cement stocks were the exception as investors opted to sell at inflated levels following a hefty rise on Monday following the reduction in federal excise duty and wavier of special excise duty for the industry.

DG Khan Cement was the volume leader with 10.49 million shares declining Rs0.73 to finish at Rs24.09. It was followed by Lotte Pakistan PTA with 8.39 million shares gaining Rs0.53 to close at Rs15.13 and Bank of Punjab with 6.09 million shares firming Rs0.25 to close at Rs6.45.

Published in The Express Tribune, June 8^th, 2011.