Market watch: Stock market regains upward drive

Benchm­ark KSE-100 index gains 77 points.

KARACHI: The stock market recovered some of its recent bullishness, with volumes and levels improving during trading on Wednesday.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.58% or 77.02 points to end at 13,360.67 point level.

Investors brushed aside macroeconomic concerns as small and mid caps led volumes, according to Elixir Securities Analyst Faisal Bilwani.

Trade volumes rose to 347.21 million shares compared with Tuesday’s tally of 313.59 million shares. The value of shares traded during the day was Rs5.83 billion.

Financial and holding companies were the pick of the day for investors. Pakistan Telecommunication Company’s stock also picked up interest, after news reports suggested that the company commands major market share in the wireless broadband segment. The entity gained 5.88% in stock value.

Habib Bank Limited (HBL) improved Rs0.80 per share, or 0.67%, as news of Chinese bank ICBC abandoning the Iran-Pakistan gas pipeline was rejected by the petroleum ministry. HBL is part of the advisory consortium on the project.

JS Bank Limited (JSBL) and Bank Al-Falah (BAFL) were investor favourites due to their attractive valuation. JSBL was the volume leader with 21.29 million shares gaining Rs0.33 to finish at Rs7.13. It was followed by NIB Bank Limited with 19.66 million shares losing Rs0.18 to close at Rs2.73 and BAFL with 18.58 million shares gaining Rs0.59 to close at Rs16.46. NIB Bank Limited was one of the top losers of the day, losing 6.2% of its stock value.

The stock market is expected to continue to trade with some volatility as indexes test new highs, said Bilwani. Foreign institutional investors were net buyers of Rs36.24 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, March 15^th, 2012.