KSE responds positively to SC decision, earnings announcements

The benchmark KSE-100 index gains 72.72 points, or 0.69 per cent, to close at 10,558.74, marking a five-month high.

KARACHI: The local bourse welcomed the Supreme Court’s decision to send the 18th amendment case back to parliament for review – a move likely to defuse tensions between the legislature and judiciary.

Analysts are in unison that the judgement added to investor confidence because of reduced political uncertainty. Better-than-expected earnings announcements also kept interest alive.

The benchmark 100-share index at the Karachi Stock Exchange gained 72.72 points, or 0.69 per cent, to close at 10,558.74, marking a five-month high.

“Investors turned bullish after the SC’s decision on the 18th amendment case, as it will prevent the tussle expected between the Federation and the judiciary,” commented Murtaza Jafar from JS Global Capital.

“Importantly, better-than-expected earnings announcements for Fauji Fertiliser Bin Qasim and Lucky Cement contributed to keeping investor interest alive,”added Sara Shahid from Elixir Securities.

Volumes also improved as almost 154 million shares exchanged hands compared with a turnover of 104 million shares on Wednesday.

Shares of 399 companies were traded on Thursday. At the end of the day, 230 stocks closed higher, 148 declined and 21 remained unchanged. The value of shares traded during the day also increased to Rs4.19 billion.

Amtex Limited led the volumes board with a total trade of 19.61 million shares.

Lafarge Pakistan Cement followed with a turnover of 11.48 million shares, gaining Rs0.42 per share to close at Rs3.43.

JS and Company came in third with a trade volume of 10.58 million shares.

The FFBL scrip also witnessed a healthy turnover after the company announced financial results above market expectations.

Meanwhile, PSO’s result for the first quarter came below market expectations at Rs4.72 per share, which led the stock price southward, according to Jafar.

Published in The Express Tribune, October 22^nd, 2010.