Market watch: Stocks regain ground as political tensions ease

Investors buy back into market in across-the-board rally.

KARACHI: Political tensions eased somewhat on Tuesday and investors celebrated by buying back into the market, helping the index recoup Monday’s losses.

“Stocks closed higher, led by blue-chip scrips ... on easing political concerns after a political leader was pardoned by Supreme Court judges and investors hoped for an early resolution of [other] political issues,” said Arif Habib Corp analyst Ahsan Mehanti.

“However, investors continued to remain wary of the uncertain political path ahead, as volumes fell to a 47-week low and remained confined to mid-capped stocks,” added Topline Securities’ equity dealer Samar Iqbal.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.87% or 143.11 points to end at the 16,645.76 points level.

Trade volumes fell to 86 million shares compared with Monday’s tally of 96 million shares. The value of shares traded during the day was Rs2.69 billion.

Shares of 353 companies were traded on Tuesday. At the end of the day 236 stocks closed higher, 58 declined while 59 remained unchanged.

“Financials dominated the day, as payout expectations kept stocks upbeat,” reported Nazim Abdul Muttalib, analyst at Elixir Securities. “Askari Bank closed at its upper price limit, as rumours suggest the ongoing acquisition [of the bank] by the Fauji Foundation will be priced near its book value. Nishat Chunain also remained in the limelight, following its management’s decision to invest in the US through a wholly-owned subsidiary. Retail favourites Maple Leaf Cement and Jehangir Siddiqui and Company continued to dominate the volumes chart, while oils and fertilizers traded lacklustre.”

Maple Leaf Cement was the volume leader with 19.97 million shares gaining Rs0.83 to finish at Rs15.50. It was followed by Askari Bank with 6.52 million shares gaining Rs1.00 to close at Rs18.84 and Byco Petroleum with 4.94 million shares gaining Rs0.24 to close at Rs13.71.

Other major index movers were MCB Bank, the Oil and Gas Development Company, Millat Tractors and United Bank, reported JS Global analyst Khalid Usmani. Investors preferred higher dividend yielding stocks ahead of the results season, he said.

Foreign institutional investors were net buyers of Rs167.26 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, January 9^th, 2013.

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