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KSE: values recorded a marginal rise

RECORDER REPORT

KARACHI: Stock values recorded a marginal rise as genuine investors stayed away from the rings and on several occasion buying and selling orders matched on fuel, energy and banks counters.

The KSE-100 index registered a rise of 6.42 points or 0.35 percent to 1,832.41 from 1,825.99 of Tuesday. The volume amounted to 256.103 million shares as against 286.120 million shares of Tuesday. The market capitalisation moved up to Rs 469.517 billion from Rs 467.423 billion of Tuesday.

The market for most of the time was in the plus column during the first session. Most of the businesses confined to traditional scrips, however, some hefty activity was recorded in the fuel and energy counters. During the second session, the index took a U-turn and suffered a decline and it received heavy battering from the bears.

The punters and speculators deliberately infused a negative rumour that Pakistani and Indian troops had exchanged fire on the borders of Kashmir. This incident proved fatal for the market men and suddenly selling surfaced in the investment stocks.

The index fell 20 points, however, before the final bell was heard, the development proved false and buying emerged from the financial institutions and leading brokerage house. The buying helped the index to recover from early shock and the market closed on a positive note.

A leading trader said that the KSE index expectedly opened on a mixed note and witnessed sidewise movements throughout the session. The market received some across-the-board profit-selling in second session from the local counters that dragged the index into negative column.

The activities in the market remained dull throughout the proceedings, representing mixed sentiments generated by local investors, as they showed their reluctance to carry their positions for a longer period.

In the second session, some profit-taking by weak holders was witnessed. However, the sentiment once again turned positive in last hour's trading as bulls picked up PTCL to close the index in an upward direction.

The KSE is still within the positive band and likely to continue its upward encroachment. Traders advised their clients to accumulate selected scrips on weakness.

The market was undecided over the decision of the government to raise the furnace oil prices by 15 percent. Analysts said that the increase in prices would improve the earnings of PSO and Shell by Rs 300 million during the current financial year. However, furnace oil used as raw material in most of the local industries, the rise would have an adverse impact on the economy. This would increase the cost of production of several industries like cement, sugar and power plants, hence making the products uncompetitive in the international market.

However, the rise was inevitable as the prices in the international market on Wednesday touched high mark of $30 per barrel. The rise in petroleum prices would help the revenue collection to inch up.

PTCL on a trading of 124.061 million shares gained 60 paisa to Rs 30.10, PSO on a turnover of 25.193 million shares closed at Rs 232.65, higher by five paisa, Hub Power moved down to Rs 27.40 from Rs 27.70 as nearly 24.766 million shares changed hands, Sui Northern Gas on a business of 16.371 million shares moved down by 30 paisa to Rs 21.95, and Fauji Fertilizer on a volume of 12.335 million shares lost Rs 1.95 to Rs 62.35.