Market watch: Bourse gains led by oil and fertiliser sector

Benchmark KSE-100 share index rises 43 points.

KARACHI:

The bourse gained on Wednesday with oil and fertiliser stocks in the limelight but volumes were dismal.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.35 per cent or 43.27 points to end at 12,369.41 point level.

Fauji Fertiliser Company (FFC) remained the best performer of the day by rising 3.3 per cent over expectations of another urea price hike of Rs65 to 70 per bag by Engro Corporation and rising international urea prices, said JS Global Capital analyst Jawad Khan.

The increase by Engro – which has been marred by severe gas issues – will make room for FFC to increase its price as well, even though its gas curtailment remains at the previous level, added Khan.

Engro continued its slump and shed another 3.45 per cent as locals preferred to sell over rising concerns about the unresolved gas crisis.

Trade volumes fell to 59 million shares compared with Tuesday’s tally of 68 million shares, although still at a dismal level.

Among oil stocks, Pakistan Petroleum remained firm after announcing a special dividend of Rs5 per share on Tuesday while Attock Refinery jumped 4.8 per cent as revision in petrol pricing is expected to benefit the company by Rs8 per share, said Khan.

Foreign Institutional Investors were net sellers of Rs150 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Shares of 340 companies were traded on Wednesday. At the end of the day 116 stocks closed higher, 117 declined while 107 remained unchanged.

The value of shares traded during the day was Rs3.85 billion.

Engro Corp was the volume leader with 5.25 million shares declining Rs5.48 to finish at Rs162.46. It was followed by Lotte Pakistan PTA with 4.26 million shares losing Rs0.09 to close at Rs14.43 and Soneri Bank right shares with 3.74 million shares dropping Rs0.05 to close at Rs0.02.





Published in The Express Tribune, June 23^rd, 2011.