Stocks inch up on interest in fertiliser, cement

After cumulatively losing 724 points in the last three sessions, the benchmark Karachi Stock Exchange (KSE) 100-share Index on Thursday made a slight recovery as investors were mainly attracted towards fertiliser and cement scrip, analysts said.
Analyst Samar Iqbal at Topline Securities said despite a positive statement by the International Monetary Fund on Pakistan’s economy, the investors were cautious over ongoing protests by a political party, Muttahida Qaumi Movement, in the city.
“Reports of 20 to 25 percent, instead of 60 percent, increase in gas development surcharge renewed interest in fertilisers, including Fatima Fertilizer, Fauji Fertilizer Bin Qasim and Fauji Fertilizer Company,” said Samar.
Besides, she added that as Engro Corporation rose as it is expected to retire its debt from the planned sale of its 10 percent shareholding in Engro Fertilizer, which fell four percent. The company is estimated to get approximately Rs7.5bn from the sale.
“Lucky Cement (LUCK) didn’t perform well due to fear of continuous foreign investment outflows,” she said. “However, we believe the stock will perform as it has already lost 15 percent since Jan 28.”
The KSE-100 shares index gained 43.07 points, or 0.13 percent, to close at 32,582.68 points. KSE 30-shares Index lost 5.79 points, or 0.03 percent, to end at 21,126.20 points.
As many as 362 scrips were active, of which 182 increased, 151 decreased and 29 remained unchanged.
The ready market turnover fell to 145.562 million shares as compared to 172.417 million shares in the last trading session.
Faisal Bilwani at Elixir Securities said equities ended marginally positive after a volatile day that saw thin turnover and very selective participation.
“Stocks opened to test 32,700 in early trade as fear of violence in Karachi city subsided,” Bilwani said.
“However profit taking was witnessed at high level and participants preferred to book gains as the day progressed on reports of foreign selling and anxiety over low turnover.”
Mohammad Mobeen at JS Global Capital said the market witnessed another volatile session and volumes remained lackluster as the market lacked triggers and suffered from consistent foreign selling.
Foreign portfolio investors sold shares valuing $2.478 million during the day.
Within the oil and gas sector, Shell shed 4.4 percent as it remained under pressure after posting a loss of Rs9.97/share for the year ended 2014.
“Going forward, we expect the market to remain volatile and recommend investors to buy high dividend yielding stocks,” Mobeen added.
Highest volumes were witnessed in Fauji Fertilizer Bin Qasim with a turnover of 21.606 million shares. The scrip gained 12 paisas to close at Rs51.42. It was followed by Pak Elektron with 14.65 million shares.
Pak Elektron inched down 20 paisas to end at Rs54.50. Jahangir Siddiqui Company was the third with a turnover of 10.58 million shares. It was up 38 paisas to finish at Rs17.32/share.