Market Watch: Trade volumes jump to 13-month high

KSE’s benchmark 100-share index declines 21 points.

KARACHI:

Trade volumes surged to a 13-month high on Wednesday as investors opted to book profits after a gain of around 3% in the last two trading sessions.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.17 per cent or 21.37 points to end at the 12,263.25 point level.

Energy stock Oil and Gas Development Company, Pakistan Oilfields and Pakistan State Oil were down by 1.2%, 0.3% and 1.3%, respectively.

Hub Power Company (Hubco) announced half-yearly results which translated into earnings per share of Rs2.59, up 5% on a yearly basis, with an interim dividend of Rs3 per share which rebuilt investor confidence after a major stakeholder sold off its share in the company recently, said Elixir Securities equity dealer Faisal Bilwani. The power producer stock price jumped 1.8% to Rs 36.01.

Better payout from Hubco brought fresh interest in other lagging power producers as Nishat Power jumped 4.7% and Nishat Chunian Power gained 2.5%.

Trade volumes gained to levels not seen in the past year of 243 million shares compared with Tuesday’s level of 196 million shares compared.

Shares of 347 companies were traded on Wednesday. At the end of the day 155 stocks closed higher, 124 declined while 68 remained unchanged. The value of shares traded during the day was Rs5.91 billion.

Second tiers led the show as top four volume leaders were below Rs10 priced stocks that churned 75% of market volumes.  Jahangir Siddiqui and Company was the volume leader with 33.88 million shares gaining Rs0.19 to finish at Rs8.18. It was followed by Fauji Cement with 25.37 million shares firming Rs0.38 to close at Rs4.51 and Lafarge Pakistan with 23.75 million shares increasing Rs0.14 to close at Rs2.32.

Foreign institutional investors were buyers of Rs219 million and sellers of Rs199 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, February 9^th, 2012.