Market Watch: Bourse ends week on a high

KSE’s benchmark 100-share index gains 139 points.

KARACHI:

The stock market wasted no time and started the upward rally on Friday right after the opening bell.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.98 per cent or 139.27 points to end at the 14,310.18 point level.

Buying interest was witnessed across the board with major gainers being the mid-tier value stocks including Engro Foods and DG Khan Cement, said Elixir Securities equity dealer Sibtain Mustafa. Better Pak-US ties and appreciation of the rupee against the dollar also raised investor sentiments.

Major positive activity was seen in cement stocks on anticipation of healthy results in the upcoming payout following record local sales in fiscal 2012.

Trade volumes surged to 94 million shares from the preceding day’s six-month low of 39 million shares.

Momentum was further supported by banks namely MCB Bank 2.5% and National Bank of Pakistan 2% amid rumours of foreign buying.

Foreign institutional investors were net buyers of Rs40 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

PSO gained 1.2% over expectations that Term Finance Certificates this time worth Rs85 billion will be issued soon to ease the power sector circular debt, say analysts.

Fauji Fertilizer Company once again remained highly sought and jumped 0.9% over expectations of better payout in the upcoming corporate result season.

Shares of 329 companies were traded on Friday. At the end of the day 157 stocks closed higher, 73 declined while 99 remained unchanged. The value of shares traded during the day was Rs3.8 billion. DG Khan Cement was the volume leader with 17.8 million shares gaining Re1 to finish at Rs42.7. It was followed by Engro Foods with 6.3 million shares firming Rs3.1 to close at Rs67.9 and Jahangir Siddiqui and Company with 5.9 million shares increasing Rs0.4 to close at Rs13.5.

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