Market watch: Index gains 76 points on foreign activity

Volumes fall, second tier stocks lead market.

KARACHI:
Foreign fund managers remained highly active on Tuesday, a day after heavy selling was witnessed at the local bourse, according to analysts.

The benchmark 100-share index at the Karachi Stock Exchange (KSE) surged 75.95 points or 0.65 per cent to close at the 11,672.64 level.

Pakistani stocks closed higher led by the financial sector, mainly MCB Bank after the bank’s chairman hinted that earnings this year are likely to be higher than market estimates, commented Elixir Securities equity dealer Faisal Bilwani. The MCB Bank scrip gained 1.8 per cent during the day’s trade to close at Rs220.3 per share.

Shares of 415 companies were traded on the first trading day of the week. At the end of the day, 211 stocks closed higher, 186 declined and 18 remained unchanged. The value of shares traded was Rs4.39 billion.

Local participation, however, remained limited since investors preferred to book profits ahead of the long weekend. Apprehensions about the city’s security situation ahead of Muharram processions also forced investors to stay on the sidelines.


The number of shares traded fell to 142.33 million on Tuesday, down more than 20 per cent from the turnover recorded on Monday. “Second tier stocks dominated volumes once again,” commented Ahmed Rauf from JS Global Capital.

Lotte Pakistan PTA led the market with a trade of almost 13 million shares. The company’s scrip fell by Rs0.21 to close at Rs13.4 per share.

JS and Company followed with a turnover of 11.63 million shares. The stock strengthened by Rs0.88 to end the day at Rs11.82 per share.

Nimir Industrial Chemicals came in third with 7.5 million shares falling Rs0.43 to close at Rs2.14. The company was the volume leader on Monday.

Published in The Express Tribune, December 15th, 2010.
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