KARACHI: Investors welcomed the newly elected board members at the Karachi Stock Exchange (KSE) as the benchmark index at the bourse closed at a 30-month high on Thursday.
The 100-share index rose 145.44 points, or 1.22 per cent, to end the day’s trade at 12,031.46 points.
Rumours played an active part in the rally and the trade volume rose to slightly above 140 million shares – the highest level during the week.
“Various news flows suggesting mergers and acquisitions in the banking sector, the latest being interest shown by Chinese concern in acquiring a large-cap bank kept the banking stocks on gaining grounds,” said Hasnain Asghar Ali from Aziz Fidahusein and Company. He added that anticipation of stock and cash dividends by leading banks also generated investor interest.
“Pakistan Oilfields (POL), Pakistan Petroleum (PPL) and the Oil and Gas Development Company (OGDCL) also remained in the limelight on talk of an expected discovery in Tal block and gained between one and three per cent,” commented Samar Iqbal, a local equity dealer.
Moreover, Sarah Shahid from Elixir Securities pointed out that Fauji Fertiliser and Engro stocks gained 1.76 per cent and 0.98 per cent, respectively, despite news that the government is set to initiate an inquiry against the latter for increasing urea price.
Shares of 400 companies were traded on the second-last trading session of the year. At the end of the day, 234 stocks closed higher, 146 declined and 20 remained unchanged. The value of shares traded during the day was Rs7.16 billion.
Lotte Pakistan PTA led the market with a trade volume of 17.3 million shares. The scrip gained more than four per cent to close at Rs13.75 per share.
National Bank followed with 11.2 million shares traded. The bank’s stock strengthened by Rs2.04 to end the day at Rs75.92 per share.
United Bank Limited (UBL) came in third. In contrast to other banking scrips, UBL fell by Rs0.17 per share to close at Rs68.02.
Published in The Express Tribune, December 31st, 2010.
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