Market Watch: Banking stocks lead upward march

KSE’s benchmark 100-share index gains 45 points.

KARACHI: The stock market rose on Thursday with the banking sector leading the way.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.38 per cent or 44.69 points to end at 11,685.15 point level.

Active buying was witnessed in banking stocks amid rumours of relaxation in forced sale value (FSV) regulations for commercial banks and development financial institutions, said JS Global Capital analyst Murtaza Jafar.

National Bank of Pakistan, expected to be the biggest beneficiary, closed up at Rs44.81 and stood second in the list of highest traded companies. MCB Bank followed with a gain of Rs3.91 to close at Rs161.7.

21 of the 24 listed banks on the bourse ended in positive territory.

Trade volumes fell to 75 million shares compared with Wednesday’s tally of 112 million shares.

Sui Northern Gas Pipelines Limited surprise drop in profits did not go well with investors as stock price plummeted 3.4% to close at Rs17.15.

Foreign institutional investors (FII) were net sellers of Rs158 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited. FII’s activity was witnessed in energy and banking stocks, said Jafar.

Shares of 360 companies were traded on Thursday. At the end of the day 145 stocks closed higher, 109 declined while 106 remained unchanged. The value of shares traded during the day was Rs3.93 billion.

Fatima Fertilizer Company was the volume leader with 8.15 million shares declining Rs0.83 to finish at Rs23.39. It was followed by National Bank of Pakistan with 7.64 million shares gaining Rs1.92 to close at Rs44.81 and Lotte Pakistan PTA with 5.59 million shares firming Rs0.27 to close at Rs12.5.

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