Market watch: Bourse surges 243 points as investors up their game

OGDC and Fauji Fertilizer close at their upper limit of the day.

KARACHI: Investors swarmed back at the stock market on Wednesday as trading activity surged to levels not seen in the past 16 weeks.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index surged 2.15 per cent or 242.55 points to end at the 11,547.71 point level.

Investors brushed aside politics and finally some good sense backed by fundamentals took charge as local and foreigners were active value hunters, said Elixir Securities equity dealer Nazim Abdul Muttalib. Current account shifting to a surplus in December, consensus of discount rate easing in the upcoming monetary policy and excitement over earnings announcements played key role in the overjoyed sentiments, added Muttalib.

Investors expect the government judiciary tussle will ease off following appointment of Aitzaz Ahsan as the government lawyer.

Trade volumes gained to 16-week high of 84 million shares compared with Tuesday’s tally of 53 million shares.

Reports of foreign buying in index heavyweight Oil and Gas Development Company took the scrip to its upper limit of the day. OGDC gained Rs6.92 to close at Rs151.35.

Fauji Fertilizer Bin Qasim, sole manufacturer of di-ammonia phosphate, also closed at its upper lock as market expects better than expected earnings and payout. The scrip jumped 4.87% to end at Rs46.74.

Shares of 343 companies were traded on Wednesday. At the end of the day 158 stocks closed higher, 69 declined while 116 remained unchanged. The value of shares traded during the day was Rs4.06 billion.

Sui Northern Gas Pipelines was the volume leader with 6.89 million shares gaining Rs0.02 to finish at Rs16. It was followed by Fauji Fertilizer Bin Qasim with 6.00 million shares firming Rs2.17 to close at Rs46.74 and National Bank of Pakistan with 5.34 million shares losing Rs0.39 to close at Rs42.11.

Foreign institutional investors were buyers of Rs309 million and sellers of Rs306 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, January 19^th, 2012.