February 28, 2012Print : Business
KARACHI: The Karachi Stock Exchange’s (KSE) benchmark index improved by 37 points on select buying in cement, banking, fertiliser and energy stocks, as investors continued to take position in those stocks, which announced healthy earnings in the ongoing results season, dealers said on Monday.
“Earnings excitement kept investors’ moral amid the market on higher side,” said Samar Iqbal, an equity dealer at the Topline Securities, adding that the developments related to the capital gains tax regime did not allow the market sustain intraday high gains. The benchmark KSE-100 Index increased by 37.14 points, or 0.29 percent, to 12,743.66 points. This was a new record high level of 45-month. The index moved either side of the fence by 136.52 points between intraday high of 12,790.52 points and a low of 12,654 points.
The KSE-30 Index surged by 35.56 points, or 0.30 percent, to 11,880.70 points.
The UBL was the star performer as it closed with one-day maximum increase of five percent, or Rs3.32, at Rs69.73. The stock ranked at the third position among the top volume leaders with 6.58 million shares. Moreover, UBL alone drove the index higher by 17 points.
Other stocks, which strengthened the index included MCB Bank, Allied Bank Limited, NIB Bank, Meezan Bank Limited, DG Khan Cement, Engro Corporation, Fauji Fertilizer Company, Pakistan Oilfields Limited, Pakistan Petroleum and PTCL.
The Oil and Gas Development Company drove the index down by 15 points. It closed at Rs165 with a loss of 52 paisas on a turnover of 397,491 shares.
“DG Khan Cement continued to remain in the limelight and closed four percent up along with Lafarge Pakistan that also gained four percent as investors believed that the cement companies’ profits will further improve.” Moreover, investors focused on the FBR-related development on the CGT reform package, she added. Hasnain Asghar Ali, a market analyst, added that the news reports regarding an increase in holding period for CGT computations led to a sluggish start.
“The FBR may increase stock holdings period to 120 days from previously 90 days so that the investors will not be asked to disclose their source of income.”
Hefty trading in mid-tier and low-priced stocks, however, disallowed the initial negativity to stay for a long period, he added.
Volumes increased to 205.79 million shares from 192.34 million shares traded in the previous session on Friday. The market capitalisation improved by Rs9 billion to Rs3,319 billion.
Out of the total 365 companies’ traded stocks, 151 declined, 145 advanced and 69 remained unchanged.
Jahangir Siddiqui was the volume leader with a turnover of 22.36 million shares as it closed at Rs10.49 with a loss of one paisa followed by DG Khan Cement with a turnover of 20.89 million shares as it closed at Rs28.23 with an increase of Rs1.07.