Market watch: UBL deal creates investor interest
KSE-100 index rises 38 points to close at 11,886.
KARACHI:
Renewed local buying interest in banking stocks helped the index rise 38 points on Wednesday, in line with regional markets.
The Karachi Stock Exchange benchmark 100-share index ended 0.32 per cent higher at 11,886.02 points.
United Bank (UBL) stole the show after Bestway (Holding) Limited, the bank’s existing shareholder, entered into a share purchase agreement with the Abu Dhabi Group to acquire 20 per cent of its stake in the bank.
UBL hit its upper limit over market rumours of a possible tender offer to the public at a higher price, said JS Global Capital analyst Jawad Khan.
The news inspired broader buying in banks which included National Bank of Pakistan, Habib Bank and others.
Volume stood at 99.78 million shares compared with 110 million shares traded on Tuesday.
Lack of news flow in the first half of trading left market participants without any clear clues for trade, which kept the bourse stuck near the neutral line for almost the entire morning with late buying in banks pushing the index to above 11,850, said Elixir Securities equity dealer Sibtain Mustafa.
Fauji Fertiliser Company remained highly sought-after stock after news that the company, following a lead from Engro, has increased urea prices by Rs190 per bag. Engro slipped a further 1.5 per cent despite informing the stock exchanges that it has started trial production at its new fertiliser plant.
However, rumours were circulating that the recent increase in urea price is being challenged by the government.
The market would likely consolidate at current levels with most of the locals betting on healthy corporate results coupled with higher levels of foreign flows in the coming quarter, said Sibtain Mustafa.
The value of shares traded during the day was Rs4.09 billion. Bank Alfalah was the volume leader with 16.22 million shares gaining Rs0.52 to close at Rs11.21. It was followed by Fauji Fertiliser Bin Qasim with 6.89 million shares falling Rs0.68 to close at Rs36.46 and National Bank with 6.73 million shares firming Rs1.11 to close at Rs73.88.
Published in The Express Tribune, December 30th, 2010.
Renewed local buying interest in banking stocks helped the index rise 38 points on Wednesday, in line with regional markets.
The Karachi Stock Exchange benchmark 100-share index ended 0.32 per cent higher at 11,886.02 points.
United Bank (UBL) stole the show after Bestway (Holding) Limited, the bank’s existing shareholder, entered into a share purchase agreement with the Abu Dhabi Group to acquire 20 per cent of its stake in the bank.
UBL hit its upper limit over market rumours of a possible tender offer to the public at a higher price, said JS Global Capital analyst Jawad Khan.
The news inspired broader buying in banks which included National Bank of Pakistan, Habib Bank and others.
Volume stood at 99.78 million shares compared with 110 million shares traded on Tuesday.
Lack of news flow in the first half of trading left market participants without any clear clues for trade, which kept the bourse stuck near the neutral line for almost the entire morning with late buying in banks pushing the index to above 11,850, said Elixir Securities equity dealer Sibtain Mustafa.
Fauji Fertiliser Company remained highly sought-after stock after news that the company, following a lead from Engro, has increased urea prices by Rs190 per bag. Engro slipped a further 1.5 per cent despite informing the stock exchanges that it has started trial production at its new fertiliser plant.
However, rumours were circulating that the recent increase in urea price is being challenged by the government.
The market would likely consolidate at current levels with most of the locals betting on healthy corporate results coupled with higher levels of foreign flows in the coming quarter, said Sibtain Mustafa.
The value of shares traded during the day was Rs4.09 billion. Bank Alfalah was the volume leader with 16.22 million shares gaining Rs0.52 to close at Rs11.21. It was followed by Fauji Fertiliser Bin Qasim with 6.89 million shares falling Rs0.68 to close at Rs36.46 and National Bank with 6.73 million shares firming Rs1.11 to close at Rs73.88.
Published in The Express Tribune, December 30th, 2010.