Buying spree continues on KSE

Stocks continue their upward march on the first trading day of the week despite increased violence in the city.

KARACHI: Stocks continued their upward march on the first trading day of the week despite increased violence in the city.

The Karachi Stock Exchange’s benchmark 100-share index ended 0.50 per cent, or 52.55 points, higher at 10,484.39, its highest close since July 30.

The persistence of foreign inflows with $31.83 million of net buying during the current month remained the key factor behind the positive trend in the market while the upcoming corporate announcements for the period ended September 2010 further strengthened investor sentiments, said Crosby Securities analyst Ovais Iqbal.

However, investors also adopted a cautious stance because of the prevailing political scenario in the country, added Iqbal.

Death toll from the latest spate of target killings climbed to 41 as the situation deteriorated on Saturday during by-elections in Orangi.

Following last week’s trend, the trading session started off on a positive note and the KSE-100 index breached the 10,500 psychological barrier before falling slightly after profit-taking.

Trade volumes fell to 103.15 million shares compared with Friday’s tally of 112.61 million shares. Trade was dominated by second-tier stocks.

Banking stocks welcomed fresh liquidity as local institutions shopped for cheaper financials namely National Bank of Pakistan and Allied Bank Limited (ABL).

ABL gained 1.38 per cent to close at Rs54.07 as it posted consolidated earnings per share of Rs7.63, higher than market expectations.

Pakistan Petroleum Limited is due to announce its results for the quarter ended September 30 on Tuesday while Pakistan State Oil will announce its results on Thursday.

On the contrary, PSO and Engro remained stuck in the red zone as both companies’ debt levels prompted investors to avoid taking any new positions, said JS Global Capital analyst Ahmed Rauf.

Shares of 405 companies were traded on Monday. At the end of the day, 209 stocks closed higher, 170 declined and 26 remained unchanged. The value of shares traded during the day was Rs3.2 billion.

Lotte Pakistan PTA was the volume leader with 16.9 million shares gaining Rs0.07 to finish at Rs9.69. It was followed by Jahangir Siddiqui and Company with 14.64 million shares increasing Rs0.52 to close at Rs9.82 and Arif Habib Securities with 6.07 million shares firming Rs1.02 to close at Rs23.24.

Published in The Express Tribune, 19^th, 2010.