Stocks surge above 10,000 mark after five weeks

KARACHI: Stocks surged on Tuesday to close above the 10,000-point psychological mark with higher volumes on fresh hopes of a breakthrough in talks over margin trading system in Wednesday’s meeting.

The Karachi Stock Exchange (KSE) benchmark 100-share index, trading after a closure for four days due to weekend and Eid holidays, rose sharply by 2.15 per cent or 211.92 points to end at 10,068.36.

A meeting between Securities and Exchange Commission of Pakistan commissioner and KSE officials on Wednesday may lead to approval of the margin trading system proposal (draft) after minor fine-tuning, dealers said.

Investors are also looking forward to a relaxation by the European Union on Pakistani exports after the devastating floods, said Topline Securities equity dealer Samar Iqbal.

Moreover, relatively peaceful Eid holidays also compelled investors to take new positions, added Iqbal.

Trade volumes increased to 83.4 million shares compared with Thursday’s tally of 50.45 million shares.

All major blue-chip companies advanced with MCB Bank and Pakistan Telecommunication Company Limited (PTCL) gaining the maximum five per cent for the day.

United Bank Limited (UBL) advanced 2.6 per cent after news that virtually all of Dubai World’s creditors have agreed to its proposal to restructure some $24.9 billion of its debt, highlighted JS Global Capital analyst Jawad Khan. UBL has an exposure of $20 million or Rs1.7 billion in Dubai World.

Shares of 370 companies were traded on Tuesday. At the end of the day, 240 stocks closed higher, 113 declined and 17 remained unchanged.

Moreover, Pakistan State Oil advanced four per cent on market talk of foreign buying interest.

Foreign investors made net buying worth $4.56 million, data released by the National Clearing Company (NCCPL) showed.

Pakistan Oilfields gained 2.3 per cent over expectations of a decent payout to be announced in its board meeting on September 30, added Khan.

Lotte Pakistan PTA was the volume leader with 12.6 million shares gaining Rs0.55 to finish at Rs8.74. It was followed by TRG Pakistan with 7.96 million shares increasing Rs0.47 to close at Rs3.77 and Jahangir Siddiqui and Company with 7.05 million shares gaining Rs0.71 to close at Rs11.01.

Published in The Express Tribune, September 15^th, 2010.