Market watch: Limited gains witnessed at KSE

KARACHI: Expectations of strong result announcements kept investors active at the local bourse despite negative sentiments generated by the assassination of Punjab Governor Salmaan Taseer on Tuesday.

The 100-share index at the Karachi Stock Exchange (KSE) recorded a mild gain of 30.58 points, or 0.25 per cent, to close at 12,140.84 after trade on Wednesday.

“The local bourse remained range-bound amid uncertainty on the political front,” commented Samar Iqbal, a local equity dealer.

“Volumes depicted a rising trend as investors continue to bet on the upcoming result session,” commented Sibtain Mustafa from Elixir Securities.

Despite the fact that trade volume fell from Tuesday’s tally, a total of 168.22 million shares exchanged hands during the day – a decent number given the uncertain political situation. “The KSE posted a decent volume of 168 million shares after a red start following yesterday’s assassination of Punjab governor,” added Mujtaba Barakzai from JS Global Capital.

Shares of 405 companies were traded on Wednesday. At the end of the day, 170 stocks closed higher, 224 declined and 11 remained unchanged. The value of shares traded during the day was recorded at Rs7.89 billion.

Lotte Pakistan PTA (LOTPTA) came in first on the volumes chart with more than 23 million shares traded. The scrip closed at Rs14.54 after strengthening Rs0.15 per share.

“LOTPTA also picked up pace, hitting a high of Rs14.83 due to the rise in international prices of purified terephthalic acid (PTA), improved margins and news of an expected decrease in freight costs,” explained Barakzai. Arif Habib Corporation followed with a trade volume of 15.3 million shares. The company’s stock gained almost five per cent to end trade at Rs26.3 per share.

Fauji Fertiliser Bin Qasim came in third with 11 million shares traded. The company’s stock gained Rs0.19 despite the possibility of a downward revision in fertiliser prices.

“Engro and Pakistan State Oil (PSO) came under selling grip after rumours that the recent hike in urea and petroleum product prices may be revised owing to protests by political parties,” said Sibtain Mustafa.

Published in The Express Tribune, January 6^th, 2011.