Market Watch: Inflation data boosts investor sentiment at bourse

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

Express January 03, 2012

KARACHI: Single digit inflation helped the index post decent gains on Tuesday amid a highly active session.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index surged 1.06 per cent or 120.03 points to end at the 11,402.04 point level.

For the first time in over two years, inflation dropped to single digit, with the consumer price index standing at 9.75% in December, according to data released by the Pakistan Bureau of Statistics on Monday afternoon.

Trade volumes more than doubled to 63 million shares compared with Monday’s tally of 33 million shares.

Banking stocks led the advance with MCB Bank and National Bank of Pakistan closing at their respective upper limits on rumours of a large local bank buys and expectations of better payout in the upcoming full year corporate announcements, said analysts.

Oil stocks witnessed mixed trend with Oil and Gas Development Company remaining out of favour and falling 0.6%, said JS Global Capital analyst Jawad Khan.

Moreover, Pakistan State Oil jumped 3.8% over expected increase in petrol demand due to increase in gas prices.

Cement stocks witnessed renewed buying interest with DG Khan Cement hitting its upper limit while Lucky Cement gained 3.8% over sustainable cement prices over the last four months and decreasing trend in international coal prices, added Khan.

Shares of 324 companies were traded on Tuesday. At the end of the day 155 stocks closed higher, 53 declined while 116 remained unchanged. The value of shares traded during the day was Rs2.36 billion.

Lotte Pakistan PTA was the volume leader with 7.03 million shares gaining Rs0.68 to finish at Rs9.98. It was followed by Fatima Fertilizer with 4.82 million shares rising Re0.01 to close at Rs23.85 and Jahangir Siddiqui and Company with 4.17 million shares firming Rs0.28 to close at Rs4.28.

Foreign institutional investors were buyers of Rs46 million and sellers of 164 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, January 4^th, 2012.