Market watch: Climb continues for fifth straight day

KSE’s benchmark 100-share index gains 120 points.

KARACHI: The stock market continued its upward trend on Friday, making it the first week in at least six months when all five days ended on a positive note.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index jumped 1.03 per cent or 119.51 points to end at the 11,761.97 point level.

Oil marketing companies led the bull run as petroleum prices are expected to be increase by 2.5% to 6% in its monthly review later today (Friday), said JS Global Capital analyst Murtaza Jafar. Pakistan State Oil managed to close up 2.9% at Rs254.58.

A decline in the interest rate for the National Savings Scheme and Pakistan Investment Bonds sparked a rally across the board as it increased hopes of a cut in the benchmark rates in the upcoming monetary policy.

National Saving Scheme rates were reduced on all products in the vicinity of 50 to 100 basis points. The benchmark Special Saving Certificate (SSC) now offers 12.5%, down from the previous 13.33% on a yearly basis.

Trade volumes increased to 96.9 million shares compared with Thursday’s tally of 80.6 million shares.

Fauji Fertilizer Bin Qasim Limited maintained its upward swing on news of higher DAP sales along with strong primary margins, which are expected to result in stellar earnings during the second half of 2011.

Foreign institutional investors were net sellers of Rs173 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited. Foreign buyers were also rumoured to be sellers in telecom and other index heavyweights, added Jafar.

Shares of 354 companies were traded on Friday. At the end of the day 185 stocks closed higher, 80 declined while 89 remained unchanged. The value of shares traded during the day was Rs4.73 billion.

Pakistan Telecommunication Company Limited was the volume leader for the second straight day with 13.87 million shares gaining Rs0.27 to finish at Rs11.62. Local institutions continue to accumulate the stock amid expectation of a higher payout.

It was followed by Fatima Fertiliser Company with 9.46 million shares firming Rs0.47 to close at Rs18.85 and Fauji Fertilizer Bin Qasim Limited with 6.63 million shares ascending Rs1.17 to close at Rs58.68.

Published in The Express Tribune, October 1^st,  2011.