Market watch :Banks lead stock market upwards

Benchmark KSE-100 index rises 42 points.

KARACHI:

The stock market continued its upward trend led by banking stocks as late buying in MCB Bank and National Bank of Pakistan (NBP) helped the index gain.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.33 per cent or 41.59 points to end at 12,474.77 points.

Banks witnessed renewed buying ahead of the first half result announcements, JS Global analyst Jawad Khan said on Thursday. Askari Bank Limited, Standard Charted Bank and Faysal Bank Limited were all among the top six gainers in the KSE-100, with Faysal Bank topping the list with a rise of Rs0.92 or 9.6% to close at Rs10.5.

MCB Bank jumped 0.6% albeit lower turnover as investors expect a dividend of Rs3 per share, which will take the cumulative half year payout to Rs6 per share. NBP gained 2.1% over expectations of a cash dividend with the first half announcement results after rumours regarding an amendment in the rules governing interim payouts, added Khan.

PakGen Power Limited’s Director of Finance rang the Karachi Stock Exchange opening bell on Thursday to formally induct PakGen into the market. The stock eased Rs0.1 to close at Rs18.9.

The exploration and production sector ended the day with mixed results as Pakistan Oilfields and Oil and Gas Development Company fell due to renewed selling while Pakistan Petroleum witnessed renewed buying over expectations of upward revisions in gas wellhead prices, added Khan.

Trade volumes fell to 70 million shares compared with Wednesday’s tally of 87 million shares.

Shares of 346 companies were traded on Thursday with 136 stocks closing higher, 101 declining and 109 remaining unchanged. The value of shares traded during the day was Rs3.24 billion.

Azgard Nine was the volume leader again with 6.93 million as rumours of a possible acquisition of Agritech kept investor interest alive. The textile giant’s shares gained Rs0.21 to finish at Rs6.22.

It was followed by Fatima Fertilizer Company Limited with 6.2 million shares gaining Rs0.06 to close at Rs17.13 and Fauji Fertiliser with 5.7 million shares gaining Rs0.02 to close at Rs164.54.

Foreign institutional investors were gross buyers of Rs65.5 million and gross sellers of Rs671 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, July 22^nd,  2011.