Market Watch: Stock market surges to 45-month high

KSE’s benchmark 100-share index gains 191 points.

KARACHI:

The stock market rebounded sharply by closing at a 45-month high on the last trading session of the week after profit taking pulled the bourse down a day earlier.

Investor sentiments soared to new highs after rumours spread that the Federal Board of Revenue has agreed in principle with the KSE management over collection of Capital Gains Tax through the exchange, said Elixir Securities equity dealer Nazim Abdul Muttalib.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 1.52 per cent or 190.6 points to end at the 12,706.52 point level.

Engro surged to its maximum upper limit of 5% on rumours that gas supply to the company’s urea plant will resume in early March. Engro also gained on reports of foreign participation, added Muttalib.

Foreign institutional investors were net buyers of Rs156 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Fatima Fertilizer, on the other hand, lost 0.4% to close at Rs23.74 on the expected conversion of its preference shares into ordinary shares creating a fear of additional supply in the market.

Trade volumes gained to 192 million shares compared with Thursday’s tally of 178 million shares.

Banking stocks remained volatile with MCB Bank making intra day highs although it slipped at market close. Habib Bank fell 2% on lower than expected earnings for 2011.

Nishat Mills gained 3.4% after the company announced first half results depicting growth of 23% on quarterly basis.

Shares of 353 companies were traded on Friday. At the end of the day 166 stocks closed higher, 88 declined while 99 remained unchanged. The value of shares traded during the day was Rs6.75 billion.

Jahangir Siddiqui and Company was the volume leader with 24.8 million shares gaining Rs0.13 to finish at Rs10.5. It was followed by DG Khan Cement with 18.4 million shares firming Rs1.23 to close at Rs27.16 and Azgard Nine with 13.9 million shares losing Rs0.24 to close at Rs7.21.

Published in The Express Tribune, February 25^th, 2012.