Stocks end flat after recovering from early fall

Stocks close in the negative following the central bank’s decision to raise the discount rate by 0.5 per cent.

KARACHI: Stocks closed in the negative on Thursday following the central bank’s decision to raise the discount rate by 0.5 per cent.

The Karachi Stock Exchange (KSE) benchmark 100-share index ended 0.09 per cent or 8.94 points lower at 10,013.31.

Fall in global capital markets, falling rupee value and political uncertainty played a key role in the negative activity despite foreign interest in blue-chip stocks and good corporate earnings in the oil and gas sector, said Director Arif Habib Investments Limited, Ahsan Mehanti.

The central bank raised its key interest rate to 13.5 per cent from 13 per cent on Wednesday.

The KSE index hit an intra-day low at 9,933.67 points but recovered as investors bought in anticipation of healthy earnings.

Turnover was 88.83 million shares compared with 44 million shares on Wednesday.

Result announcements by the Attock Group lifted market sentiments. Pakistan Oilfields was among the volume leaders on hopes of higher payout and better earnings. The results are scheduled to be announced on Friday.

Attock Petroleum Limited initially supported the market with surprise FY10 earnings of Rs62.40 per share, along with a dividend of Rs20 per share and 20 per cent bonus shares. The stock closed up 1.6 per cent.

Shares of 384 companies were traded during the day. At the end of the day, 183 stocks closed higher, 182 declined and 19 remained unchanged.

Lotte Pakistan was the volume leader with 17.3 million shares losing Rs0.33 to finish at Rs8.39. It was followed by Bank Alfalah with 8.46 million shares gaining Rs0.17 to close at Rs8.2 and JS Growth Fund with 5.02 million shares losing Rs0.02 to close at Rs3.09.

Published in The Express Tribune, October 1^st, 2010.