KARACHI, Jan 9: Stocks ended higher on Wednesday on foreign buying especially in the cement sector on hopes of healthy earnings for the first half of this fiscal year, due to be announced in the coming days.

Foreign investors were extremely active on Wednesday, as they bought shares worth a net $5.18 million compared with $1.71m on Tuesday, bringing the total for this month to $5.2m.

The KSE 100-share index ended 0.58 per cent, or 96.46 points, higher at 16,742.22 points. It traded in a narrow range as it made an intra-day high and low at 16,746.09 and 16,645.76, respectively.

But investors remained cautious and kept to the sidelines amid political uncertainty.

“Market closed in positive territory albeit with low volumes with activity dominated in the cement sector on expectation of healthy results for second quarter of FY13.

Askari Bank also remained in the spotlight following State Bank of Pakistan’s NoC for Fauji Foundation on acquisition of majority shares of the bank.

Investors in the near-term are likely to keep a cautious stance given the volatile domestic politics,” said Ayub Ansari of AKD Securities Ltd.

Though turnover increased slightly to 90.99 million shares, compared with 86.79m shares traded on Tuesday, it still remained below 100 million shares. But trading value rose to Rs3.08 billion from Rs2.69bn in the previous trading session, and the market capitalisation stood at Rs4.19 trillion, higher than Monday’s Rs4.17tr.

Askari Bank also generated investor interest as the State Bank of Pakistan finally allowed the Fauji Foundation to acquire majority shares of Askari Bank.

Market sources said Askari Bank would be jointly acquired by the Fauji Foundation, the Fauji Fertiliser and the Fauji Fertiliser Bin Qasim.

The energy sector also helped support the market as OGDCL rose Rs2.15 to end at Rs191.55 and Pakistan Oilfields closed Rs3.06 higher at Rs436.87.

Dealers said investors were also keenly awaiting the outcome of the two-week dialogue on post-programme monitoring by the International Monetary Fund on Pakistan’s macroeconomic situation and future cooperation.

Mutual funds were the major sellers in the market as they sold equities worth $3.37m. The biggest gainer was UniLever Pakistan which ended Rs80.77 higher at Rs10,080.77, followed by Attock Petroleum Ltd which closed Rs5.8 higher at Rs511.55.

Pakistan International Container witnessed the biggest loss as it shed Rs9.91 to Rs205.28 followed by Abbott Lab, which ended Rs9.35 lower at Rs203.67.

The KSE-30 index ended 0.70pc, or 94.89 points, higher at 13,696.41.

Out of the 319 companies traded, the value of 165 increased, 128 decreased while 26 remained unchanged.

The second and third tier companies dominated the 10 most active traded stocks, whereas the cement sector remained in the limelight: Maple Leaf topped the list as it ended 26 paisa higher at Rs15.76 on turnover of 14.52 million shares, Askari Bank gained marginally one paisa to Rs18.85 on 12.43m shares and Jahangir Siddiqui Company Ltd fell 6 paisa to close at Rs15.05 on almost 5 million shares.

Byco Petroleum shed 38 paisa to close at 13.33 on 3.96m shares, TRG Pakistan gained three paisa to Rs5.45 on 3.85m shares and DG Khan Cement rose 87 paisa to end at Rs53.89 on 3.45m shares.

Lucky Cement posted huge gains as it rose Rs3.23 to Rs150.34 on 3.36m shares, Nishat Chunian shed Rs1.24 to Rs34.42 on 2.67m shares and Pak Elektron ended 33 paisa higher at Rs10.22 on 2.58m shares.

Fauji Cement increased by 7 paisa to close at Rs6.39 on turnover of 2.48m shares.