After the previous day’s dismal display with the shortened trading session, yesterday’s bullish session helped recover capitalisation lost earlier during the week. The Benchmark index closed at 12,346 level shedding merely 44 points during the week with daily average volume of 40 million shares.
The KSE 100 index closed at 12346.52 levels with the gain of 79.19 points and total volume stood at 62,864,656 along with the total value of 3,544,730,222. KSE 30 index gained 113.23 points to close at 11792.91 levels and All Share index closed at 8563.74 levels after gaining 50.40 points. In total, 126 scrips advanced, 113 declined and 103 remain unchanged out of a total of 342 scrips traded.
Buoyant earnings expectations appear to have overshadowed the prevalent law and order situation in the city that plagued investor sentiment in the week. Investor optimism especially in Pakistan Oilfields Limited and fertiliser stocks excluding Engro quickly spilled over onto other bellwether stocks to pull the overall index northward. Re-rating of market multiples in the upcoming result season seems plausible and may fetch attractive yields for savvy investors. “We believe with the upcoming result season, stock market may witness overwhelming response from investors,” said Salman Vidhani, Senior Investment Analyst at HMFS.
KSE 100 index was led by Fauji Fertiliser Company which stands to be the biggest beneficiary if the company follows Engro’s urea price hike of Rs145 per bag (including sales tax). FFC jumped 3.9 per cent as analysts expect a Rs2 per share positive impact of this price hike for 2011. Engro on the other hand remained in the ‘red,’ closing down 2.9 per cent over further gas curtailment for its new plant and a slight under subscription of Engro Foods.
