Market watch: Stock market continues positive momentum

Benchmark KSE-100 index gains 36 points.

KARACHI: The stock market continued from where it left off on Tuesday and gained 36 points.

Institutional buying was witnessed on Wednesday ahead of the result season, said JS Global analyst Mujtaba Barakzai.

The KSE-100 benchmark index gained 0.32% to end the day at 11,269.95 points.

Furthermore, Tuesday’s approval by the Economic Coordination Committee to increase profit margins by 30-32% for oil marketing companies also played its part as Attock Refinery and National Refinery performed well on this news of government allowing incidental changes, he added.

Attock Refinery gained Rs5.07 to end at Rs119.86 while National Refinery jumped Rs7.42 to close at Rs365.81.

Equities played along the neutral line as lack of trigger and institutional activity pushed stocks at jobbers’ mercy, said Elixir Securities equity dealer Nazim Abdul Muttalib. Although volumes picked up after mid-day excitement in Fatima Fertilizer, which ended the day on its upper limit, as the company is expected to post healthy cash payout, he added.

Trade volumes recovered from a dismal level but still remain low at 46.3 million shares compared with Tuesday’s 26.8 million shares. The total value of trade on Wednesday was worth Rs2.15 billion.

Foreign institutional investors remained net sellers of Rs75.2 million worth of shares during the trade session, according to data compiled by National Clearing Company of Pakistan Limited.

Fatima Fertilizer was the volume leader with 7.76 million shares gaining Rs1 to finish at Rs16.32. It was followed by Pakgen Power Limited with 4.33 million shares with a gain of Rs1.01 to close at Rs21.38 and Lotte Pakistan PTA with 3.12 million shares increasing by Rs0.44 to close at Rs11.11.

Published in The Express Tribune, August 18^th, 2011.