Market watch: Shining day at the KSE

Market rebounds as oil, fertiliser and textile stocks lead rally on the back of increasing commodity prices, margins.

KARACHI: The market rebounded on Tuesday after witnessing a bearish trend on the first trading day of 2011 as oil, fertiliser and textile stocks led the rally on the back of increasing commodity prices and margins, according to analysts.

The benchmark 100-share index at the Karachi Stock Exchange (KSE) jumped 260.8 points, or 2.2 per cent, to close at 12,110.26 points.

“Availability of high dividend-yielding stocks at decent discounts was well capitalised by local and offshore participants, while the rising trend in international oil prices attracted funds in the beneficiary stocks,” commented Hasnain Asghar Ali from Aziz Fidahusein and Company.

Samar Iqbal from Elixir Securities attributed the market’s recovery to signs of improvement on the political front – however, this was before news of Punjab Governor Salmaan Taseer’s assassination took over the airwaves.

Trade volume improved significantly from the preceding day as almost 220 million shares exchanged hands – an increase of more than 140 per cent.

Shares of 404 companies were traded on Tuesday. At the end of the day, 299 stocks closed higher, 86 declined and 19 remained unchanged. The value of shares traded during the day more than doubled to Rs9.24 billion.

Lotte Pakistan PTA (LOTPTA) and the Karachi Electric Supply Company (KESC) led the volumes chart, accounting for almost 40 per cent of the overall turnover. LOTPTA, with 45 million shares traded, strengthened seven per cent to close at Rs14.39 per share. “LOTPTA closed at its upper limit amid an expected decrease in freight costs,” highlighted Ahmed Rauf from JS Global Capital.

Meanwhile, the KESC scrip gained more than 14 per cent to end trade at Rs3.38 per share. More than 35 million KESC shares were traded on Tuesday.

Azgard Nine followed with a trade volume of 10.7 million. “Buying spree was seen across the board, while focus remained on LOTPTA, Pakistan Oilfields, National Bank, Fauji Fertiliser Company, Fauji Fertiliser Bin Qasim and Nishat Mills on the back of expected healthy earnings and higher payouts,” added Samar Iqbal.

Published in The Express Tribune, January 5^th, 2011.