Market watch: Bourse climbs to five-month high

Benchmark KSE-100 index gains 76 points.

KARACHI:

The stock market gained on the first trading session of the week to close at a five-month high amid healthy volumes.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.61 per cent or 76.11 points to end at 12,560.28 points.

The market recovered from the early morning bearish spell after rumours emerged that the Federal Board of Revenue requested the KSE managing director to suggest an alternative proposal to capital gains tax for individuals, said JS Global Capital analyst Ahmed Rauf.

The fertiliser sector was the major loser as early morning news suggested that the US may ask Pakistan to ban production of ammonium nitrate, a key ingredient used in production of fertiliser products, said Rauf.

Trade volumes firmed to 57 million shares compared with Friday’s nine-month low of 35 million shares.

Banks were the major gainers of the day with National Bank of Pakistan closing at its upper limit amid talk of foreign buying.

Foreign institutional investors were net buyers of Rs249 million worth of shares, according to data compiled by the National Clearing Company of Pakistan Limited.

Shares of 315 companies were traded on Monday. At the end of the day, 114 stocks closed higher, 107 declined and 94 remained unchanged. The value of shares traded during the day was Rs2.83 billion.

Lotte Pakistan PTA was the volume leader with 8.03 million shares, declining Rs0.57 to finish at Rs12.96. Depressed PTA margins kept Lotte, the sole producer of the chemical in the country, under pressure during trade, said Topline Securities equity dealer Samar Iqbal. It was followed by Bank of Punjab with 5.34 million shares, gaining Rs0.33 to close at Rs6.33 and National Bank with 4.85 million shares, gaining Rs2.48 to close at Rs53.31.

Published in The Express Tribune, July 5^th, 2011.