Market watch: Bourse gains on renewed interest

KSE’s benchmark 100-share index jumps 92 points.

KARACHI: Renewed investor interest after a five-day break helped the Karachi stock market close higher on Monday.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.83 per cent or 91.81 points to end at 11,162.39 points. The market remained closed from Wednesday to Friday on account of Eid holidays.

Continued buying from local institutions helped National Bank of Pakistan and Engro Corporation rise five per cent to their upper circuit breaker. Engro Corporation’s stock received heavy battering in the past two months on news of low gas supply to its fertiliser plant.

Foreign institutional investors were highly active as they were gross buyers of Rs446.5 million and gross sellers of Rs426.8 million worth of shares, according to data compiled by the National Clearing Company of Pakistan Limited.

Nishat Power Limited’s (NPL) lower-than-expected result was not taken well by the market as the stock closed at its lower limit for the day, said Elixir Securities equity dealer Nazim Abdul Muttalib.

Nishat Mills that owns 56% of NPL also came under pressure despite expectations of a good payout in earnings announcement due today (Tuesday), added Muttalib.

Trade volumes improved to 74.2 million shares compared with previous trading session’s tally of 53 million shares.

Hub Power Company also rose two per cent on expectations of a better-than-expected dividend, according to an analyst.

Shares of 319 companies were traded on Monday. At the end of the day, 144 stocks closed higher, 94 declined and 81 remained unchanged. The value of shares traded during the day was Rs3.39 billion.

National Bank was the volume leader with 15.3 million shares, gaining Rs1.79 to finish at Rs38.76. It was followed by Fauji Fertiliser Bin Qasim Limited (FFBL) with 6.14 million shares, gaining Rs0.9 to close at Rs51.3 and Lotte Pakistan PTA with 5.44 million shares, firming Rs0.07 to close at Rs11.77.

FFBL remained in the limelight as investors preferred to accumulate its shares on expectation of a healthy dividend.

Published in The Express Tribune, September 6^th,  2011.