KSE-100 Index: Daily Overview – November 3

The KSE-100 index, after closing in the negative zone on Wednesday, November 2, gained 61 points on Thursday, November 3 to close at 11,807 points, surpassing the 11,800 mark for the first time this month.

Volumes remained low throughout the trading session, locking in 61.487 million shares during the day.

70% of OGDC’s free float is believed to be held by the foreign investor and thus volumes have remained on the lower side for the past few months. However, more than one million shares were traded today and Mr. Ali Nadeem, Manager of Equity Sales at First
National Equities, opined that this added to the positive sentiment of the market today.

Apart from this, encouraging results of FFC, PSO and ENGRO initiated a buying spree across the board, hinting that the next few sessions might be fruitful for investors. Nevertheless, the market has gained more the 550 points in two trading sessions and
thus there might be profit-taking when the market re-opens on Tuesday, November 1.

The fertiliser sector led the market yet again with ENGRO, FFC and Fatima Fertiliser closing at upper-lock. A common factor for this surge in price was the increase of urea prices by Rs. 400/bag. Furthermore, FFC announced earnings of Rs. 16.31 for the nine-month
period from January to September along with a cash pay-out of Rs. 5.50. It is worth noting that this year, to date, FFC has given cash dividend of Rs. 14.75 out of the Rs. 16.31 earnings, making it a substantial percentage.

ENGRO, on the contrary, had announced earnings of Rs. 14.21 for the nine months along with a cash pay-out of Rs. 2 for the third quarter. Ali highlighted that the fertiliser sector is becoming a safe haven for investors and might attract a lot of investment
from abroad in the near future.

PSO had announced earnings of Rs. 14.50, Rs. 3 more than what the market had expected and thus ended on a positive note.

With Eid round the corner, investors are adopting a cautious approach. It will be interesting to see how the market reacts when the last trading session before the break begins on Friday, November 4.

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Posted by Hammad Malik on Nov 3 2011. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry