Market watch: Massive buying takes bourse to six-week high

KSE’s benchmark 100-share index surges 329 points.

KARACHI:
Investors pushed the stock market to a six-week high on Wednesday with massive buying across the board as expectation rose of a cut in discount rate following lower-than-expected inflation data.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index surged 2.86 per cent or 329.1 points to end at 11,851.98 points.

Inflation stood at 11.56% in August against market expectation of 13.20%, according to analysts.

Index heavyweight Oil and Gas Development Company (OGDC) contributed heavily to market gains by hitting its upper limit of the day. National Bank of Pakistan, ICI, Pakistan Reinsurance and Adamjee Insurance also hit the upper limit.

Trade volumes more than doubled to 117 million shares compared with Tuesday’s tally of 49.3 million shares.


Foreign institutional investors and institutions were said to be fresh buyers in OGDC, Pakistan State Oil, MCB Bank and Pakistan Oilfields, said JS Global Capital analyst Mujtaba Barakzai.

Foreign institutional investors stepped up activity as they were net buyers of a whopping Rs335 million worth of shares, according to data compiled by the National Clearing Company of Pakistan Limited.

Shares of 354 companies were traded during the session. At the end of the day, 195 stocks closed higher, 83 declined and 76 remained unchanged. The value of shares traded during the day was Rs6.67 billion.

Fauji Fertiliser Bin Qasim was the volume leader with 8.07 million shares, gaining Rs1.2 to finish at Rs55.26. It was followed by National Bank with 7.44 million shares, firming Rs2.24 to close at Rs47.17 and Arif Habib Corporation with 6.79 million shares, increasing Rs0.89 to close at Rs28.08.

Published in The Express Tribune, September 22nd,  2011.
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