Market Watch: Bourse rises as investors buy Engro, sell FFC

KSE’s benchmark 100-share index rises 61 points.

KARACHI: The stock market rose on Thursday in a dull session with majority activity confined in the fertiliser sector.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.52 per cent or 61.37 points to end at 11,807.46 point level.

Investors switched positions by selling Fauji Fertilizer Company (FFC) – the highest traded share – and buying Engro Corporation – the second highest traded share – after the government restored gas supply to the plant and decided to work on establishing sustainable provision of gas supply to the company, said Elixir Securities equity dealer Sibtain Mustafa.

Engro and FFC had recently emerged as an ideal swap as gas curtailment hampered Engro and allowed FFC a good run, added Bilwani.

But anomalies in financial markets don’t last forever, Engro reversed its recent price hike as government promised to restore gas in three days which raised investor confidence, said Bilwani.

Engro Corporation surged 5%, its upper limit of the day, after gas was restored to its new plant Enven.

Trade volumes fell to paltry level 61 million shares as investors seemed to leave early ahead of the long weekend compared with Wednesday’s tally of 64 million shares. The market will remain closed from 7 to 9 November on account of Eidul Azha and Iqbal Day.

Shares of 332 companies were traded on Thursday. At the end of the day 121 stocks closed higher, 121 declined while 90 remained unchanged. The value of shares traded during the day was Rs3.29 billion.

Fatima Fertilizer Company was the volume leader with 12.9 million shares losing Rs1.04 to finish at Rs23.97. It was followed by Engro Corporation with 5.47 million shares gaining Rs6.19 to close at Rs130.18 and Fauji Fertilizer with 5.12 million shares declining Rs0.41 to close at Rs180.51.

Foreign institutional investors were gross buyers of Rs85 million and sellers of Rs74 worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, November 4^th,  2011.