Market watch: Index up, volumes down
The benchmark 100-share index at the Karachi Stock Exchange (KSE) climbed 121.74 points, or 1.08 per cent, to close at 11,343.55 points.
“Investors turned bullish after rumours of industry negotiations with the Oil and Gas Regulatory Authority (Ogra) to revise refining margins,” commented Murtaza Jafar from JS Global Capital.
Clarification over turnover tax-related earnings is expected to outweigh negative changes in margins of oil marketing companies (OMCs), added Sibtain Mustafa from Elixir Securities.
The government, earlier in the week, decided to slash OMC and refinery margins from four per cent to three per cent.
Shares of 389 companies were traded on Thursday. At the end of the day, 215 stocks closed higher, 151 declined and 23 remained unchanged. The value of shares traded during the day was Rs6.04 billion.
The number of shares traded during the day fell to 134.8 million – down almost 15 per cent from Wednesday.
Lotte Pakistan PTA came in first on the volume leader board with a trade volume of 25.82 million shares, accounting for almost 20 per cent of the total turnover.
Samar Iqbal, an equity dealer, attributed the interest in the stock to higher average monthly margins for the company. The scrip gained Rs0.42 to close at Rs12.59 per share.
DG Khan Cement followed with a turnover of 17.4 million shares. The company’s stock swelled Rs0.80 to end trading at Rs30.42 per share.
Nishat Mills Limited came in third with 9.2 million shares traded.
“Volume contribution by the Mansha stocks supported by gains in index heavyweight OGDCL allowed the bourse to reflect a positive stance,” commented Hasnain Asghar Ali from Aziz Fidahusein and Company.
The Oil and Gas Development Company (OGDCL) stock gained one per cent to close at Rs165.66 per share.
Published in The Express Tribune, December 3rd, 2010.
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