The bourse regained some of the ground lost this week on Wednesday. Investors rallied on expectations of good corporate results and dug in positions at dips.
“Stocks closed higher amid institutional interest in an oversold market,” remarked Ahsan Mehanti from Arif Habib Corp. “Investors took positions in stocks across the board, on hopes for the release of $1.12 billion in payments from the US against the Coalition Support Fund.”
“Strong earnings outlook, record earnings announcement by Fauji Fertilizer, and renewed foreign interest in blue chip stocks played a catalyst role in bullish sentiments ... despite concerns for macroeconomic conditions and uncertain global markets.”
The Karachi Stock Exchange’s (KSE) benchmark 100-share index recovered 0.36% or 52.61 points to end at the 14,564.68 points level. Trade volumes stayed flat at 57 million shares compared with Tuesday’s tally of 57 million shares. The value of shares traded during the day was Rs2.56 billion.
Equity dealer Samar Iqbal remarked that the two weeks period granted by the Supreme Court to the federation to reconsider its stance on the letter to be sent to Swiss authorities helped equities regain some value.
Shares of 291 companies were traded on Wednesday. At the end of the day 128 stocks closed higher, 95 declined while 68 remained unchanged.
“Fauji Fertilizer posted an above market consensus result of Rs8.12 for the first half of 2012, along with a second interim dividend of Rs5. Hence, much of the activity was witnessed in the stock, [which attracted] volumes of 3.9 million shares,” reported JS Global analyst Mujtaba Barakzai.
Jahangir Siddiqui and Company was the volume leader with 5.23 million shares gaining Rs0.42 to finish at Rs15.59. It was followed by DG Khan Cement with 4.51 million shares gaining Rs0.37 to close at Rs45.31 and Nishat Mills with 4.49 million shares gaining Rs1.25 to close at Rs53.45.
Foreign institutional investors were net buyers of Rs208.48 million ($2.19 million), according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, July 26th, 2012.