Stock market rises after NRO hearing postponed

KSE's benchmark 100-share index rises 0.95 per cent or 97.64 points to close at two-month high of 10,389.97.

KARACHI: The stock market started Wednesday’s trading with some uncertainty over the National Reconciliation Ordinance (NRO) case but sentiments turned positive later as the hearing was adjourned again.

The Karachi Stock Exchange’s benchmark 100-share index rose 0.95 per cent or 97.64 points to close at a two-month high of 10,389.97.

Support from state-owned enterprises along with no major development in the NRO case aided bullish sentiments, said JS Global Capital analyst Mujtaba Barakzai.

The Supreme Court postponed until November 1 a hearing on a government appeal against the overturning of an amnesty law that allowed some politicians to return after years of exile but which was thrown out in December 2009 by the Supreme Court.

Pre-result rally was seen in cement and fertiliser stocks, added Barakzai. Most companies will announce their financial results for the quarter ended September 30 in coming weeks.

Trade volumes increased to 81.34 million shares compared with Tuesday’s tally of 51.89 million shares. Majority of the activity was witnessed in second-tier scrips.

Oil and Gas Development Company Limited, the heaviest weighted company, gained 1.38 per cent to end at Rs149.75 as all stocks in the oil and gas sector closed in the green.

Shares of 405 companies were traded during the day. At the end of the session, 236 stocks closed higher, 144 declined and 25 remained unchanged. The value of shares traded during the day was Rs3.27 billion.

Jahangir Siddiqui and Company was the volume leader with 6.7 million shares gaining Rs0.47 to finish at Rs9.57.

It was followed by Lafarge Cement with 6.41 million shares gaining Rs0.21 to close at Rs3.02 and Fauji Fertiliser Bin Qasim with 4.83 million shares increasing Rs0.5 to close at Rs29.7.

Published in The Express Tribune, October 14^th, 2010.