KSE gains 50 points as banks pick blue-chips

Tuesday, January 05, 2010
By our correspondent

KARACHI: As anticipated, the return of banks with fresh investments on the first session of 2010 on Monday pushed the Karachi bourse to positive territory.

The gains, however, remained moderate as investors from other walks of life continued to play under pressure owing to rise in terror activities. While, turnover also recorded below 100 million shares in this session.

The KSE 100-share Index registered a gain of 50.93 points or 0.54 per cent and closed at 9,437.85 points. Its junior partner the 30-Index increased by 74.67 points or 0.76 per cent and concluded at 9,924.59 points.

The Oil and Gas Development Company (OGDC) remained the star performer contributing over 21 points alone on the key benchmark 100-Index. Except for MCB Bank and Fauji Fertilizer Bin Qasim, which posted some losses on the said index, all the other blue-chips managed to maintain in positive territory.

As per NCCPL record, the banks and development financial institutions (DFIs) were the biggest buyers of shares in this session with worth $8.12 million shares.

Banks/DFIs were the largest segment of investors, which offloaded shares worth $10.89 million in the last session of the year 2009 for the sake of realizing capital gains. Banks booked this huge profits in the last session to close their year-ending books with higher profits for the enter year, people from banking sector had said and anticipated that banks would have returned with New Year funds allocation to be invested in shares market which proved true.

Non-Banking Finance Companies (NFBCs) followed the footsteps of banks/DFIs in this session too and injected $1.70 million. Investors under the category of Other Organizations also poured in $2.19 million, according to NCCPL.

On the contrary, local companies led the list of day sellers with offloading shares worth $6.39 million, individuals withdrew $3.06 million and mutual funds divested $1.04 million.

Analysts said that increase in terror activities and emergence of new political crisis since President Asif Ali Zardari delivered his speech in Larkana on the second death anniversary of Benazir Bhutto, kept equity investors in two minds.

Turnover was 94.59 million shares against 140.21 million shares on Dec 31. Turnover in future market took a nosedive to 1.84 million shares from record high of 10.61 million shares traded in the last working session. Market capitalisation improved by Rs13 billion to Rs2,718 billion.

Analyst Furqan Punjani said that on the first day of 2010, market witnessed a dull session as volumes remained on the lower side. Surge in international oil prices triggered exploration and production stocks while cement sector rallied in anticipation of hike in cement prices.

Another analyst, however, added that continued surge in international oil prices, which reached above $80 a barrel and increase in retail prices of urea also fueled buying moments though it was lackluster.

Out of total 399 active stocks, 221 stocks advanced, 162 stocks declined, while the value of remaining 16 stocks closed unchanged.

Highest volumes were witnessed in DG Khan Cement at 11.38 million closing at Rs33.76 with a gain of Rs1.20, followed by Bank of Punjab at 9.14 million closing at Rs20.46 with a gain of 96 paisa, AH Securities at 6.906 million closing at Rs49.76 with a gain of 49 paisa, PTCL at 5.49 million closing at Rs18.07 with a gain of 42 paisa, and Bank Alfalah at 3.88 million closing at Rs13.76 with a loss of one paisa.