Stock market ends bearish trend after three days
“Buying in the second session and foreign activity in the energy sector helped lift the market,” said Khalid Iqbal Siddiqui, head of research at Invest and Finance Securities Limited.
The Karachi Stock Exchange (KSE) benchmark 100-share index ended 42.64 points higher at 9,909.44.
Low volumes continued as there was no major trigger in the market, said Siddiqui. The trend will continue till the announcement of the monetary policy, he added.
The State Bank of Pakistan is scheduled to announce the monetary policy on September 29 for the next two months. The central bank raised its key policy rate by 50 basis points to 13 per cent in July.
Analysts are divided this time with some predicting a similar hike this time around while others expecting the rate to remain unchanged.
Shares of 366 companies were traded on Friday. At the end of the day, 210 stocks closed higher, 136 declined and 20 remained unchanged. The value of shares traded during the day was Rs1.5 billion.
Turnover was registered at 48.57 million shares compared with 39.41 million shares on Thursday.
Pakistan State Oil (PSO) stood firm throughout the day on talk of negotiations between the Federal Board of Revenue (FBR) and the company management on the fate of turnover tax which is currently severely affecting the company’s profitability, analysts said.
Lotte Pakistan PTA managed to shine among volume leaders after its sponsor announced an investment of up to $40 million to set up a power plant to save fuel cost, they said.
Locals were seen active in holding companies and third tier stocks. TRG Pakistan was the volume leader with 7.06 million shares gaining Rs0.56 to finish at Rs3.89. It was followed by Lotte Pakistan PTA with 3.64 million shares increasing Rs0.16 to close at Rs8.56 and Fatima Fertiliser Company with 2.84 million shares firming Rs0.16 to close at Rs11.4.
Published in The Express Tribune, September 25th, 2010.
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