KSE closes in the green

Stocks end the week on a positive note despite expectations of a bearish trend after a hike in the policy rate.

KARACHI: Stocks ended the week on a positive note despite expectations of a bearish trend after a hike in the policy rate. The State Bank of Pakistan raised its key policy rate by 50 basis points to 13.5 per cent on Wednesday for the following two months.

The benchmark 100-share index at the Karachi Stock Exchange (KSE) ended 29.13 points, 0.29 per cent, higher on Friday to close at 10,042.44 points.

Local investors were active during the session after no massive selloff was witnessed following the central bank’s decision to increase the discount rate, said Hammad Aslam, Vice President at BMA Capital.

Volumes, however, remained dull with 63.82 million shares traded during the day compared with the turnover of 88.83 million recorded on Thursday.

“The market seemed to have been spurted on after Pakistan Oilfields results that were slightly lower than forecasts but the hefty payout excited a news-starved market,” commented an analyst.

Pakistan Oil Fields Limited announced a net profit of Rs7.4 billion, marking an increase of 32 per cent, and a payout of Rs17.5 per share for fiscal 2010.

The analyst added that foreign flows are keeping the market excited although economics will take the front burner from now onwards.

Nishat Chunian Limited (NCL) was the star performer as it gained 6.2 per cent to close at its upper circuit level on the back of expectations of an improved financial result.

Banks also remained in limelight with increasing volumes as the sector stands to benefit with higher rates ensuring firm net interest margins.

Shares of 352 companies were traded during the day. At the end of the day, 184 stocks closed higher, 155 declined and 13 remained unchanged. The value of shares traded during the day was Rs2.26 billion.

TRG Pakistan emerged the volume leader with 7.35 million shares traded, gaining Rs0.28 to close at Rs4.27 per share.

It was followed by Silkbank Limited with 4.73 million shares traded during the day. The scrip went up by Rs0.16 to close at Rs3.01 per share.

NCL came third with a trade volume of almost four million shares. The company’s stock climbed up by Re1 to close at Rs17.08.

Published in The Express Tribune, October 2^nd, 2010.