Market Watch: Bourse continues to strengthen position

KSE’s benchmark 100-share index gains 37 points

KARACHI: Renewed investor interest in oil and cement stocks on the first trading session of the week pushed the index to levels not seen since 2010.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.29% or 37.14 points to end at the 12,743.66 point level.

DG Khan Cement firmed 4% and continued to remain in the limelight along with Lafarge Pakistan gaining 4% as investors believe that profits of the cement industry going forward will further improve, said Topline Securities Equity Dealer Samar Iqbal.

Morning trade started on a cautious note following reports over the weekend that the government is considering withdrawing tax amnesty for equities.

Trade volumes gained to 205.8 million shares compared with Friday’s tally of 192 million shares. Pakistan Oilfields rose 1% and hit recent highs as international oil prices continue their upward trajectory.

United Bank Limited rose to its daily upper limit of 5% as the stock continues to remain a favourite among foreigners following healthy earnings announcement.

Foreign institutional investors were buyers of Rs363 million and sellers of Rs492 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Engro gained 1.4% as gas supply is expected to resume to its new fertiliser plant by next week.

Shares of 366 companies were traded on Monday. At the end of the day 145 stocks closed higher, 151 declined while 70 remained unchanged. The value of shares traded during the day was Rs6.33 billion.

Jahangir Siddiqui and Company was the volume leader with 22.4 million shares declining Re0.01 to finish at Rs10.49. It was followed by DG Khan Cement with 20.9 million shares gaining Rs1.07 to close at Rs28.23 and Lafarge Pakistan with 17.4 million shares firming Rs0.09 to close at Rs2.62.

Published in The Express Tribune, February 28^th, 2012.