KARACHI: The Karachi stock market closed higher on Tuesday as record earnings announcements in banks and chemical sectors propelled investors to go for buying activity.
The Karachi Stock Exchange (KSE) 100-share index gained 17.44 points or 0.15 percent to close at 11,933.46 points as compared to 11,916.02 points of the previous session. The KSE 30-share index also increased by 44.85 points to close at 11,599.88 points as compared with 11,555.03 points.
Analysts said stocks edged higher driven by healthy corporate results announcements by some companies, and dealers said volumes also improved as compared with the last few days.
However, they said stocks are unlikely to rise much in the coming days as investors remain worried that the upcoming budget, expected to be announced for 2011-12 (July-June) fiscal year by the end of May or early June, may include some measures that could affect stock investment.
The market turnover went up by 142.61 percent to 110.34 million shares from its opening at 45.48 million shares. The market capitalisation increased 0.12 percent to Rs 3.173 trillion as against Rs 3.169 trillion. Losers outnumbered gainers 152 to 137, while 77 stocks were unchanged.
“Above expectations result of Lotte Pakistan PTA was well taken by investors as 54 percent of total volume was traded in this stock alone,” said Topline Sec analyst Samar Iqbal. “It closed at its upper circuit breaker of the day. Result-based activity was witnessed at KSE as investors opted for selected stocks before the upcoming federal budget.”
MCB gained 1.95 percent due to better-than-expected earnings growth of 21 percent, while NBP saw some selling pressure as the first quarter earnings were below expectations.
The KMI 30-share closed at 20,229.91 points after opening at 20,175.14 points, showing a gain of 54.77 points. The KSE all-share index gained 11.39 points to close at 8,308.46 points as against 8,297.07 points.
“Positive close was witnessed with rising volumes after banks and chemical sectors posted record earnings,” said Arif Habib Investment Limited Director Ahsan Mehanti. “Institutional and foreign interest was seen on strong valuations.”
Lotte Pakistan PTA was the volume leader with 59.18 million shares as it closed at Rs 16.66 after opening at Rs 15.68, gaining 98 paisas. DG Khan (R) traded 4.48 million shares as it closed at Rs 4.00 from its opening at Rs 4.08, shedding eight paisas. Jah Siddi and Co traded 3.74 million shares as it closed at Rs 7.05 as against its opening at Rs 7.10, losing five paisas. staff report
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