Market Watch: Trade volumes surge to two-year high

KSE’s benchmark 100-share index gains 190 points.

KARACHI:

Breaking records and reaching new highs has become a daily phenomenon at the stock market in recent weeks, on Monday it was the turn of trade volumes – an indicator of the activity level – to reach a two-year high.

Volumes surged significantly thanks to oil and banking stocks that remain in the limelight as foreign flows find cheaper valuations and more importantly spur local confidence, said Elixir Securities equity dealer Faisal Bilwani.

Trade volumes gained to 295 million shares compared with Friday’s tally of 253 million shares.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 1.45 per cent or 189.34 points to end at the 13,278.31 point level.

Bank Alfalah, third highest traded share, closed at its upper daily limit on post result excitement. Following course, National Bank of Pakistan and United Bank added to fresh gains as the former continues to be sought on result announcement while the latter on cheaper valuations, said Bilwani.

National Bank of Pakistan is expected to be in the limelight on Tuesday as well as the country’s largest bank by assets is scheduled to announce 2011 earnings.

There was major buying interest witnessed in refineries on the back of recovering margins. Attock Refinery closed the day at its upper circuit while National Refinery gained 2.8%.  Foreign institutional investors were buyers of Rs302 million and sellers of Rs280 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited. The value of shares traded during the day was Rs8.12 billion.

Fauji Cement was the volume leader with 32.8 million shares declining Rs0.14 to finish at Rs4.89. It was followed by Jahangir Siddiqui and Company with 27.5 million shares gaining to its upper circuit of Re1 close at Rs10.37 and Bank Alfalah with 23.1 million shares firming Re1 to close at Rs15.53.

Published in The Express Tribune, March 6^th, 2012.