Market watch: Stocks regain lost ground as dust settles

Market gains 99 points as panic eases.

KARACHI: Investors resumed trading on Thursday focused more on earnings-related stories rather than booking profits on panic. Resultantly, the stock market regained some lost ground from yesterday’s selling spree and closed well into the green territory.

“After a steep fall yesterday, the market gained 100 points today amid some serenity on the political front, while volumes remained low,” said Topline Securities’ equity dealer Samar Iqbal. “Activity remained confined towards mid cap stocks … cherry picking in independent power producers, Fauji Fertilizer and cement stocks was also seen.”

“Higher international oil prices and strong earnings outlook played a catalyst role in bullish sentiments in an oversold market, amid concerns for the energy crisis and falling foreign interest,” added Arif Habib Corp analyst Ahsan Mehanti.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index reclaimed 0.60% or 98.55 points to end at the 16,588.54 points level. Trade volumes plunged to 102 million shares compared with Wednesday’s tally of 241 million shares. The value of shares traded during the day was Rs2.42 billion.

“…institutional buying in blue chips like MCB Bank and Fauji Fertilizer helped the index in to the green [territory]. Volumes, though, remained confined to third-tier names such as Jahangir Siddiqui Company and Azgard Nine,” said JS Global analyst Ovais Ahsan. “A pre-result rally was witnessed in Fauji Fertilizer Bin Qasim, as expectations of a final cash payout of Rs2 invited dividend hunters,” he added.

“Textiles and cement small and mid caps bounced back on retail participation, with Jahangir Siddiqui Company leading the volumes chart, while foreigners were reportedly somewhat active in very select names,” added Faisal Bilwani, from Elixir Securities.

Shares of 357 companies were traded on Thursday. Jahangir Siddiqui and Company was the volume leader with 17.32 million shares gaining Rs0.99 to finish at Rs15.76. It was followed by Byco Petroleum with 10.49 million shares gaining Rs0.28 to close at Rs13.38 and Maple Leaf Cement with 7.19 million shares gaining Rs0.31 to close at Rs14.36.

Foreign institutional investors were net buyers of Rs14.04 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, January 4^th, 2013.

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