Market Watch : Stocks crawl up 13 points in volatile session

Engro Corporation falls to 33-month low.

KARACHI: Stocks closed marginally higher in a volatile session on Monday as investors booked profits when the bourse was up almost 145 points at midday.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.11 per cent or 12.51 points to end at the 11,477.12 point level.

Fertiliser stocks remained in the limelight while index giant Oil and Gas Development Company supported the benchmark 100-share index to close in the positive territory, said Topline Securities equity dealer Samar Iqbal.

Continued profit taking amid gas curtailment issues dragged Engro down to a 33-month low, added Iqbal.

Fauji Fertilizer and Engro Corporation gained in early trade after rumours of a Rs100 per urea bag increase by Engro to compensate for production losses due to gas curtailment, however, gains soon surrendered after institutional sell orders clicked in on concerns of gas availability.

Gas availability has become a key issue for textile and fertiliser industries as domestic consumption in transportation has increased, resulting in more curtailment for industries. Trade volumes gained but still at dismal level of 46 million shares compared with Friday’s tally of 43 million shares.

Foreign institutional investors were gross buyers of Rs278 million and sellers of Rs384 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Shares of 309 companies were traded on the first trading session of the week. At the end of the day 107 stocks closed higher, 114 declined while 88 remained unchanged. The value of shares traded during the day was Rs2.34 billion.

Fauji Fertilizer was the volume leader with 4.34 million shares declining Rs1.14 to finish at Rs157.69. It was followed by Lotte Pakistan PTA with 3.58 million shares gaining Rs0.38 to close at Rs9.56 and Azgard Nine with 3.57 million shares firming Rs0.01 to close at Rs3.26.

Published in The Express Tribune, December 13^th, 2011.