Late buying helps KSE gain 10 points

Friday, January 08, 2010
By our correspondent

KARACHI: Late buying on selective counters helped the Karachi bourse inch up on Thursday, the fourth consecutive bull-run session. Earlier, notable increase of about four per cent in the last three consecutive sessions kept margin hunters active throughout the session.

The KSE 100-share Index posted a modest increase of 10.11 points or 0.10 per cent and closed at 9,737.47 points.

On the contrary, the parallel running junior 30-Index incurred marginal loss of 12.66 points or 0.12 per cent and concluded at 10,244.21 points.

Analysts said that market briefly crossed the immediate resistance level of 9,800 points a couple of times during the day, but fast depreciating rupee did not allow market to maintain higher where participants opted to square up intra-day positions.

However, the yesterday losers were the gainers in this session and vice-versa. Pak Petroleum, Pak Oilfields, Fauji Fertilizer Bain Qasim, and Habib Bank are among those which recovered grounds. Engro Chemicals and Pakistan Telecommunication Company invited fresh investments.

Analyst Furqan Punjani said that after two consecutive bull runs the market participants booked profit primarily due to consistent pressure on rupee against dollar.

Overseas investors divested $1.19 million, local companies and mutual funds sold shares worth $2.19 million and $1.20 million, individuals and Banks/DFIs purchased shares worth $2.67 million and $1.75 million respectively, according to NCCPL.

Volumes were healthy with major contribution by PTCL in the end. Turnover improved to 236.25 million shares against 228.20 million shares yesterday. Turnover in future market declined half to two million shares as compared with 4.15 million shares traded a day earlier. Market capitalisation enhanced by four billion rupees to Rs2,800 billion.

Analyst Ahsan Mehanti said that mixed activity was witnessed on profit taking by retail and institutional investors on uncertainty over political impact on expected detailed SC judgment on NRO due within days.

Oil & gas sector remained positive on rising international oil prices near to $83 a barrel and expectation on revision of wellhead gas prices this month. Fall in rupee value, however, invited pressure on market sentiment, he added.

Analyst Hasnain Asghar Ali said that absence of aggressive participation by the foreign participants and the news of dollar making a high of Rs85 against local currency became the straw that broke the camel’s back, although events of rising trend in international oil prices and weakening of local currency stayed positive for exploration and exporting concerns.

Besides certain banking stocks, stocks from textile sector having decent export proceeds and inventories of yarn resisted the negativity that was quite prominent in overall market as the local participants made fresh bets, as the slide local currency benefited and high rates for yarn will add up to their profitability, thus keeping providing various trading options to the market men, he added.

Out of total 389 active stocks, 188 stocks advanced, 185 stocks declined, while the value of remaining 16 stocks closed unchanged.

Highest volumes were witnessed in Lotte Pakistan at 25.70 million closing at Rs9.14 with a gain of 30 paisa, followed by Pakistan Telecommunication Company at 22.02 million closing at Rs19.10 with a gain of 55 paisa, AH Securities at 15.21 million closing at Rs50.47 with a loss of Rs1.80, JS Company at 13.29 million closing at Rs30.51 with a loss of 66 paisa, and Nishat (Chunian) at 12.56 million closing at Rs22.55 with a gain of Rs1.02.