KARACHI: The stock market rose on Tuesday as the release of suspended $1.2 billion Coalition Support Fund becomes a reality.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.45 per cent or 65.46 points to end at the 14,577.00 points level.
A new agreement on Nato supplies was signed between Pakistan and the US on Tuesday, replacing the existing Memorandum of Understanding in place since 2004. The agreement includes the release of long overdue finances from the Coalition Support Fund, which is reimbursement for expenses accrued in the war against terrorism.
Oil stocks came under the limelight for a change as Pakistan Oilfields inched up 0.9% while Pakistan State Oil witnessed a late snap rally but finished flat despite expectations of the government intervening to pay the country’s largest oil marketing company to ease its financial woes, said JS Global Capital analyst Jawad Khan.
Trade volumes fell to 77 million shares compared with Monday’s tally of 82 million shares.
In the financial sector, Bank Alfalah was highly sought on expectation of a cash payout along with its half-yearly earnings.
Foreign institutional investors were net buyers of Rs192 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.
Shares of 304 companies were traded on Tuesday. At the end of the day 155 stocks closed higher, 97 declined while 52 remained unchanged. The value of shares traded during the day was Rs3.1 billion.
Arif Habib Corporation was the volume leader with 9.7 million shares following announcement of an impressive 50% increase in net profit to Rs4.25 billion in fiscal 2012. However, stock price of the group’s holding company declined by Rs0.7 to Rs33.0.
It was followed by Bank Alfalah with 6.2 million shares falling Rs0.1 to close at Rs18.8 and DG Khan Cement with 5.7 million shares descending Re0.1 to close at Rs46.2.
Published in The Express Tribune, August 1st, 2012.