Market watch: Stocks at 30-month high, volumes at 30-day low

Fertiliser and oil stocks remain in the limelight as KSE-100 ends 51.56 (0.43%) higher on Monday.

KARACHI: The stock market opened the week with a bang as the bourse surged 52 points to close at a 30-month high while volumes remained at a month low.

The Karachi Stock Exchange benchmark 100-share index ended 0.43 per cent or 51.56 points higher at 11,909.73.

Investor participation remained low due to provincial and Christmas holidays, said JS Global Capital analyst Ahmed Rauf. The number of shares traded fell to a dismal level of 85.15 million shares from the previous trading day’s 87 million shares.

Investor sentiment remained positive throughout the trading session on hopes for an early launch of leverage products after the Securities and Exchange Commission of Pakistan (SECP) appointed a new chairman, said Arif Habib Investments Limited Director Ahsan Mehanti.

Fertiliser stocks remained in the limelight after Engro increased urea prices by Rs190 and urea sales showed an impressive growth in November. Fauji Fertiliser Company, Engro and Fauji Fertiliser Bin Qasim Limited (FFBL) closed up 1.3 per cent, 1.2 per cent and 2.4 per cent, respectively.

Healthy earnings and better payout expectations sparked interest in the fertiliser sector, said Topline Securities equity dealer Samar Iqbal.

Corporate results for the quarter ending December are due to be announced in coming weeks.

Oil stocks also attracted attention and closed in the green with international crude oil prices staying above $91 a barrel, giving investors a convincing reason to buy at current levels, said analysts.

Shares of 403 companies were traded on the first trading session of the week. At the end of the day, 236 stocks closed higher, 144 declined and 23 remained unchanged. The value of shares traded during the day was Rs4.02 billion.

DG Khan Cement was the volume leader with 6.38 million shares gaining Rs0.33 to finish at Rs30.27. It was followed by FFBL with 6.29 million shares firming Rs0.86 to close at Rs37.31 and Lotte Pakistan PTA with 5.48 million shares gaining Rs0.09 to close at Rs13.59.

Published in The Express Tribune, December 28^th, 2010.