Market watch: Central bank’s surprise move lifts stock market

Discount rate cut to 13.5% against market expectations.

Express August 01, 2011


The stock market rose by 63 points on Monday following the State Bank of Pakistan’s unexpected decision to lower the discount rate by 50 basis points.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.52% to end at 12,253.39 points.

The gains in equities failed to stimulate interest from sideliners, with various economic and financial woes, a volatile law and order situation and political uncertainty keeping the trade volume low at 38.9 million shares, said Aziz Fidahusain and Company research head Hasnain Asghar Ali. The number dipped compared to Friday’s tally of 46.17 million shares.

WorldCall Telecom led the trade volumes chart with 3.63 million shares traded at Rs1.68 with a positive change of Rs0.03. NIB right shares were second with 2.21 million shares traded at an unchanged rate of Re0.01.

Fauji Fertiliser remained in the limelight, increasing 1.5% on the day after better-than-expected results on Friday. It was third in trade volume with 2.14 million shares traded at Rs162.32 after rising Rs2.46 by the end of the day.

Other gainers were Pakistan Oilfields, with more than one million shares traded, which increased by Rs4.5, as investors expected better results from the company, said Topline Securities equity dealer Samar Iqbal.

Shares of 322 companies were traded. At the end of the day, 108 stocks closed higher, 120 declined and 94 remained unchanged. The value of shares traded during the day was Rs2.2 billion. Foreign institutional investors were gross buyers of Rs253.1 million and gross sellers of Rs160.8 million worth of shares during the trade session, according to data compiled by National Clearing Company of Pakistan Limited.

Published in The Express Tribune, August 2nd, 2011.

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