Stock market firms to two-year high

The stock market continues positive momentum for 4th day running on speculation of good corporate results.

KARACHI: The stock market continued the positive momentum for the fourth day running and closed at a two-year high on speculation of better-than-expected corporate results.

The Karachi Stock Exchange (KSE) benchmark 100-share index rose 0.48 per cent or 51.23 points to end at 10,703.71.

Broad-based activity kept the momentum high as local institutions initially brought some fresh liquidity perhaps betting on the upcoming results, informed Elixir Securities equity dealer Nazim Abdul Muttalib.

Talk of foreign buying in banking and power sectors followed by active punting by day traders kept investor interest alive throughout the session, said Muttalib.

Easing of the government-judiciary standoff encouraged investors to accumulate shares, added Muttalib.

Earlier, the market opened on an encouraging note, after a statement by foreign minister that the country will get a $7.5 billion grant from the US over the next five years, said JS Global Capital analyst Ahmed Rauf.

Key results in the upcoming days include those of MCB Bank on Tuesday and Oil and Gas Development Company on Wednesday.

Volumes dropped slightly to 158 million shares from Friday’s 160.34 million. Lotte Pakistan PTA and Nishat Mills Limited increased by 1.8 per cent and 2.2 per cent, respectively, amid speculation of higher-than-expected results.

Shares of 389 companies were traded on the first trading day of the week. At the end of the day, 232 stocks closed higher, 145 declined and 12 remained unchanged. The value of shares traded during the day was Rs4.89 billion.

Lotte Pakistan PTA was the volume leader with 15.9 million shares gaining Rs0.18 to finish at Rs10.43. It was followed by Bank Alfalah with 11.2 million shares gaining Rs0.67 to close at Rs9.99 and National Bank of Pakistan with 7.93 million shares firming Rs0.12 to close at Rs67.81.

Published in The Express Tribune, October 26^th, 2010.