Market Watch: Stock market rises in volatile session

KSE’s benchmark 100-share index gains 98 points.

KARACHI: The stock market managed to close in the black on the first trading session of the week with the help of late foreign buying.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.89 per cent or 98.19 points to end at the 11,112.65 point level on Monday.

The market took a downward flight in early trade after the Supreme Court’s issued a notice to the prime minister to appear personally before the court on January 19, said Topline Securities Equity Dealer Samar Iqbal.

Trade volumes gained but still at paltry level of 26.7 million shares compared with Friday’s tally of 32 million shares. Oil and Gas Development Company (OGDC) was the top performer as investors took the opportunity to accumulate on lower levels as rumours of continued foreign selling in the script subdued. Index heavyweight OGDC alone contributed 69 points to the total gain, added Iqbal.

Foreign institutional investors were net buyers of Rs63 million worth of shares.

Tractor manufacturers Millat Tractor and Al-Ghazi Tractor both closed at their upper limit of the day following news reports that the government would reduce sales tax from 16% to 5% to ease retail prices.

Flurry of activity was seen in the fertiliser sector as expectations of high cash payout and bonus continued with the full year result. Fauji Fertilizer Bin Qasim was the volume leader with 3.99 million shares gaining Rs0.47 to finish at Rs44.05. It was followed by Fatima Fertilizer Company with 3.35 million shares firming Rs0.08 to close at Rs22.95 and Fauji Fertilizer Bin Qasim with 2.07 million shares increasing Rs2.6 to close at Rs22.95.

Published in The Express Tribune, January 17^th, 2012.