Though trading activity has started to pick up, the local bourse made its way up slowly as investors expect volatility in the market due to results triggers which have been dominating sentiments.
Macroeconomic triggers helped the bourse to continue on its upward trend, however the market closed flat again.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.07% or 11.69 points to end at 15,865.53 point level.
“Lacklustre activity was witnessed during the session today as market participants were apprehensive about taking new positions just before Eid holidays,” said Fahad Ali, analyst at JS Global Capital.
Trade volumes ascended to 144 million shares compared with Tuesday’s tally of 103 million shares.
Shares of 378 companies were traded on Wednesday. The value of shares traded during the day was Rs4.4 billion.
Pace Pakistan – a real estate developer – was the volume leader with 28 million shares shedding Rs0.54 to finish at Rs2.98. It was followed by Pakistan Telecommunication Company with 11.5 million shares losing Rs0.63 to close at Rs18.57 and DG Khan Cement with 8.9 million shares gaining Rs0.53 to close at Rs52.3.
Positive activity in DKGC was on the back of strong earnings posted by the company for their first quarter results, added Ali.
Cement exports surged by 42.35% to 1.9 million tons worth $146 million in the first quarter of the fiscal year 2012-13, according to the data released by the Pakistan Bureau of Statistics.
In sector-specific news, Fatima Fertilizer hit its upper circuit at Rs24.85 on the back of the news of government approving gas for the fertiliser sector and anticipation of strong fertiliser numbers coming by week end.
The Economic Coordination Committee approved allocation of additional 202 million cubic feet per day (mmcfd) of gas to the fertiliser sector. In-principle approved allocation for Pak Arab and Dawood Hercules Fertilizers plants was 55mmcfd on a rotational basis, 25mmcfd for Agritech and 82mmcfd for ENGRO’s Enven plant.
In this regard, analyst estimates imply 32% growth in earnings in 2012 for Engro assuming Enven receives gas for 107 days at the same cost of gas incurred on the base plant, according to Shajar Research.
Foreign interest was witnessed at the exchange as foreign institutional investors were net buyers of Rs851.57 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, October 25th, 2012.