Market watch: Bourse climbs despite profit-taking in major stocks

Benchmark KSE-100 index rises 66 points.

KARACHI: The local bourse witnessed profit-taking at higher levels with focus remaining on the index-heavyweight oil and gas sector, energy sector and fertiliser stocks; however, telecom sector supported the market to close in black.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.42% or 65.58 points to end at 15,753.82 point level.

The international clearing house (ICH) made its way back in investors’ speculations, and Pakistan Telecommunication Company (PTCL) registered high volume turnover for the session.

Investors expected higher profitability in PTCL after the implementation of the ICH, said Samar Iqbal, equity dealer at Topline Securities.

The proposed gateway will converge all international calls to a single technical gateway led by PTCL against the current practice of being handled by 14 long distance international operators.

Trade volumes climbed to 133 million shares compared with Tuesday’s tally of 110 million shares.

The earlier reports of successful drilling operation on Mamikhel, smooth operation at Maramzai provided the momentum Pakistan Oilfields to close up 0.9%.

The fertiliser sector was battered in the last 30 minutes on the news that Sui Northern Gas Pipelines (SNGPL) will be unable to provide further gas to Dawood Hercules Fertilizers (DHFL) and other fertiliser producers on its network due to low gas pressure, which resulted in an immediate shut down of the DHFL plant, said JS Global Capital analyst Mujtaba Barakzai.

Engro Corporation also reacted negatively on the same news, closing down 2.3% to Rs102.27 with 2.8mn shares traded. The SNGPL network includes Pakarab Fertilizer, Engro Enven, Agritech Limited and DHFL fertiliser plants. Both Engro and DHFL plants received gas for only 33 days of operations in the first six months of 2012.

The value of shares traded during the day was Rs4.9 billion.

Hub Power Company was the volume leader with 14.5 million shares shedding Rs1.23 to finish at Rs45.47. It was followed by PTCL with 11.2 million shares gaining Rs0.03 to close at Rs19.80 and Karachi Electric Supply Company with 7.7 million shares climbing Rs0.05 to close at Rs5.52.

Foreign institutional investors were net sellers of Rs143.96 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, October 11^th, 2012.