KARACHI: The final trading session of the week saw profit taking at the local bourse after closing at record highs for the three straight sessions. Although the index-heavyweight oil and gas and banking sector closed up, but were no match for the other leading stocks witnessing some correction.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.1% or 16.64 points to end at the 16,807.91 point level.
“Pakistan equities closed marginally negative ahead of the weekend on profit taking as market tested 16,900,” said Elixir Securities analyst Faisal Bilwani. Trade volumes rose to 313 million shares compared with Thursday’s tally of 258 million shares.
Shares of 398 companies were traded on Friday. At the end of the day 159 stocks closed higher, 191 declined while 48 remained unchanged. The value of shares traded during the day was Rs6.34 billion.
According to earlier reports, the Oil and Gas Development Company (OGDC) discovered gas from the exploratory well in Sindh. The well flows at 20 million cubic feet per day (mmcfd) of gas. Based on the initial gas field production of 20mmcfd and adjusting for OGDC’s 95% working interest, the company may have a considerable positive impact on earnings, says a Shajar Capital research note. The news attracted buying in the stock, which rose Rs1.68 to close at Rs189.84.
“Lotte Pakistan witnessed renewed interest on expectation of foreign institutional investment,” said Samar Iqbal, equity dealer at Topline Securities.
According to a statement issued by company officials, the Pakistan International Airlines (PIA) had started a process of fleet modernisation and revamping its entire service to turn around the ailing airline with a new business model. The news spurred buying for the ailing national carrier.
Cement manufacturers saw profit-taking after climbing for successive sessions since release of local cement despatches figures. However, news of rising input costs for the sector due to climbing international coal prices may hurt their profitability in the long run.
Lotte Pakistan was the volume leader with 58.92 million shares gaining Rs0.83 to finish at Rs8.19. It was followed by Azgard Nine with 24.99 million shares gaining Rs0.18 to close at Rs8.89 and Pakistan International Airlines with 21.89 million shares rising Rs0.3 to close at R4.01.
Foreign institutional investors were net buyers of Rs289.34 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, December 8th, 2012.
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