Market watch: Healthy economic data lifts stock market

KSE’s benchmark 100-share index jumps 166 points.

KARACHI: Surprisingly low inflation data for August triggered an across-the-board rally at the Karachi bourse on Tuesday.

Bulls took over the market as inflation stood at 11.56% against market consensus of 13.20%, according to analysts.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index surged 1.46 per cent or 166.23 points to end at 11,522.87 points.

Index heavyweight Oil and Gas Development Company contributed to the rally and closed at its 5% upper limit of the day on the first day of trading ex-dividend with good volumes while Pakistan Oilfields gained Rs7 to close at Rs372.92.

Trade volumes rose to 49.3 million shares compared with Monday’s tally of 31.2 million shares.

Volumes edged up as jobbers took advantage of changing sentiments by betting on rate cut to revive activity at the bourse, said Elixir Securities equity dealer Sibtain Mustafa.

With inflation numbers on a downward trend, likelihood of a discount rate cut is increasing, though fiscal slippages will continue to put pressure on currency, added Mustafa. Foreign institutional investors were net sellers of Rs22.9 million worth of shares, according to data compiled by the National Clearing Company of Pakistan Limited.

National Bank also remained in the limelight with 4.4 million shares changing hands and the stock price rose Rs0.8 to close at Rs44.93.

Shares of 325 companies were traded during the session. At the end of the day, 157 stocks closed higher, 87 declined and 81 remained unchanged. The value of shares traded during the day was Rs2.64 billion.

Bank of Punjab was the volume leader with 5.36 million shares, gaining Rs0.31 to finish at Rs6.33. It was followed by National Bank with 4.39 million shares, firming Rs0.72 to close at Rs44.93 and Lotte Pakistan PTA with 3.21 million shares, closing unchanged at Rs12.60.

Published in The Express Tribune, September 21^st,  2011.