Market watch: Stock market gains in volatile session

KSE’s benchmark 100-share index rises 17 points.

KARACHI:

The stock market wandered around the neutral line before closing higher on Tuesday as mixed investor sentiments prevailed.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.14 per cent or 16.77 points to end at 11,642.46 point level.

Investors carefully watched the gathering of all political parties along with senior army officials to discuss tensions with the US, said Elixir Securities equity dealer Sibtain Mustafa.

On the other hand, the textile sector witnessed active buying as India officially announced to withdraw its opposition on Pakistan’s inclusion in GSP Plus status which provides preferential access to Pakistan’s exports in European countries. Textile companies Nishat Chunain soared to its upper limit of the day and Nishat Mills jumped 1.2% on the news.

Trade volumes fell slightly to 80.6 million shares compared with Wednesday’s tally of 87.4 million shares.

Foreign institutional investors were net sellers of massive Rs297 million worth of share during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited. Foreign buyers rumoured sellers in telecom and cement stocks, according to JS Global Capital.

Shares of 356 companies were traded on Thursday. At the end of the day 140 stocks closed higher, 135 declined while 81 remained unchanged. The value of shares traded during the day was Rs 2.9 billion.

Lucky Cement, contributing 8% to total market volumes, rose 3.3% on rumours of buying by state institutions.

Pakistan Telecommunication Company Limited was the volume leader with 14.94 million shares gaining Rs0.08 to finish at Rs11.35. The telecom giant was an actively traded share as investors expect higher payout going forward while local institutions were seen actively accumulating the stock being offloaded by foreigners, said Mustafa.

It was followed by Fatima Fertiliser with 8.96 million shares declining Rs0.27 to close at Rs18.38 and Lucky Cement with 5.67 million shares firming Rs2.39 to close at Rs74.95.

Published in The Express Tribune, September 30^th, 2011.