The stock market took a back seat on Wednesday as investors shifted their focus towards the monetary policy due later in the evening.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.22 per cent or 25.88 points to end at 11,532.83 point level.
The government’s decision to tax industry on gas consumption did not help the cause, said Elixir Securities equity dealer Faisal Bilwani.
Fauji Fertilizer closed negative on news reports of 193% hike in gas prices for the fertiliser sector. This move if not countered by urea price hike will wipe away as much as Rs6‐7 earnings per share from the company’s net profit in the financial year, added Bilwani. Fatima Fertilizer gained 0.74% as it has a gas price freeze while Engro Corporation also ended in the green by gaining 1.3%.
Trade volumes gained slightly but still at paltry level of 38 million shares compared with Tuesday’s tally of 37 million shares.
The State Bank of Pakistan decided to keep policy rate unchanged at 12%, which is expected to prove negative for the market as analysts expected a rate cut.
Foreign institutional investors were net sellers of Rs187 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.
Shares of 304 companies were traded on Wednesday. At the end of the day 125 stocks closed higher, 86 declined while 93 remained unchanged. The value of shares traded during the day was Rs1.55 billion.
Jahangir Siddiqui and Company was the volume leader with 5.8 million shares gaining Rs0.25 to finish at Rs5.83. It was followed by Fatima Fertilizer Company with 4.15 million shares gaining Rs0.17 to close at Rs23.12 and DG Khan Cement with 3.15 million shares increasing Rs0.31 to close at Rs20.75.
Published in The Express Tribune, December 1st, 2011.
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