Market Watch: Stock market continues upward rally

KSE’s benchmark 100-share index gains 46 points.

KARACHI: The stock market on Tuesday continued its upward rally with the banking sector leading the way.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.35% or 46.03 points to end at 13,324.34 the point level.

A mixed trading session was witnessed as major oil, fertiliser and cement shares underwent mild pruning while the banking sector’s result announcement supported the rally, said JS Global Capital analyst Jawad Khan.

The banking sector was led by National Bank after it surprised the market with the cash dividend of Rs7.5 per share and 10% bonus shares.

Another commercial bank UBL also closed near its upper limit after excellent payout announced few days back. Oil stocks remained under pressure as investor’s focus was towards banking stock.

Other banking names United Bank (UBL) gained 3.52% and Allied bank surged 4.45% as investor confidence in larger banks improves significantly post earnings announcement well supported by reports of foreigners buying in UBL.

Foreign institutional investors were net buyers of Rs27.8 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

DG Khan Cement dipped 2.2% over profit taking, followed by Lucky Cement edging lower 0.8% despite news that Saudi Arabia lifts ban on cement imports, a move that should benefit Pakistan cement manufacturers.

Trade volumes fell 251 million shares compared with Monday’s two-year high tally of 295 million shares.

National Bank of Pakistan was the volume leader with million shares 40.61 million shares gaining Rs1.13 to finish at Rs54.95. It was followed by Jahangir Siddiqui and Company with 31.6 million shares firming Rs0.59 to close at Rs10.96 and Bank AlFalah with 19.8 million shares increasing Rs0.45 to close at Rs15.98.

Published in The Express Tribune, March 7^th, 2012.