The Karachi stocks market Tuesday recovered from Monday’s setback and gained 13 points on the back of what the analysts said a confidence-building statement from the White House saying Washington would “carry forward” its complicated relationship with Islamabad.
Monday saw the benchmark 100-share index nose-diving by 154 points reflecting a cautious reaction from investors at the country’s largest bourse towards Saturday’s deadly Nato attacks on Pakistan Army’s check posts.
On Tuesday, however, the index set in the green zone and recovered by 12.80 points or 0.11 per cent to close at 11,506.95 points against 11,494.15 of the previous day. “Stocks closed higher at KSE after the White House’s statement to carry forward Pak-US relationship with separate investigation of attacks on Pakistan border positions,” said Ahsan Mehanti of Arif Habib Investments. The intraday high and low was, respectively, recorded at 11,617.40 and 11,426.50 points.
Despite an upward trend in the index the trading volumes remained lower and were recorded at the ready-counter at 37.386 million shares compared to Monday’s 46.243 million shares. The trading value also appreciated to Rs2.1 billion from the previous Rs2.0 billion. Of the total 293 traded scrips, 109 advanced, 105 declined and 79 remained unchanged. The market capitalisation remained almost static at Rs2.99 trillion.
The KSE 30 index also gained 19.38 points and closed at 10,764.72 points as compared to 10,745.34 points on Monday. The index hit the intraday high and low of 10,866.15 and 10,665.67.
“Global markets recovery and hopes on favourable SBP policy announcements on November 30 played a catalyst role in recovery of oversold market,” said Mehanti adding this was despite the investors’ concerns for falling rupee-dollar parity and uncertainty over Pak-US relations.
The analyst cited factors like the resumption of SNGPL fed gas supplies to fertiliser plants, expectations for rise in local POL prices this week and higher banking sector spreads of 7.67 per cent for October 2011 as a driving force behind a positive close at the KSE.
Fatima Fertiliser Company was volume leader of the day having counted its traded shares at 5.459 million. The company’s share price set in the green zone and closed at Rs22.95 after opening at Rs22.19. Other best performers included Fauji Fertiliser Bin Qasim, Fauji FertiliserXD, Attock Refinery, Arif Habib Company SD, Azgard Nine, Engro Corporation POT, DG Khan Cement, National Bank of Pakistan and Lotte PakPTA. The scrips counted their traded shares, respectively, at 4.3 million, 2.1 million, 1.7 million, 1.6 million, 1.6 million, 1.4 million, 1.4 million, 1.2 million and 1.0 million shares.
The futures market was also bullish having seen its trading turnover increased to 5.019 million shares against 4.9 million of the previous day. The scrips that gained numbered 60, those categorised as minus were 48 with no unchanged scrip. FFBL-DEC continued to lead the companies with 1.404 million of its shares traded on the day.
