KARACHI, Jan 21: Stocks ended higher on Monday as investors went on buying spree ahead of the earnings season on hopes of strong corporate profits for the December end quarter, due to be announced in the coming days, dealers said.

The KSE 100-share index ended 0.24 per cent, or 39.04 points, higher at 16,640.81 points. It traded in a narrow range as it made an intra-day high and low at 16,683.05 and 16,593.53, respectively.

Turnover decreased to 128.25 million shares, compared with 181.72m shares traded on Friday and trading value fell to Rs3.73 billion from Rs4bn in the previous trading session. However, market capitalisation stood at Rs4.15 trillion, slightly higher than Friday’s Rs4.14tr.

“Selective stock picking was seen at Karachi Market after no major political noise over the weekend. MLCF and FCCL remained in the limelight in expectation of better Dec quarter results. FFC (Fauji Feriliser) also performed well ahead of its December result. Interest was also seen in closed end funds as most them have already announced their meetings to decide whether to open or revoke,” said Samar Iqbal, a dealer at Topline Securities Ltd.

Dealers said bargain investors were accumulating selective stocks especially from the cement and textile sectors. The exploration and production sector also helped the market hold onto its gains as OGDC rose Rs1.32 to Rs186.88.

“Earnings euphoria kept the sentiments positive through out the session, roll-over pressure did restrict the upside wherein stocks having a high roll-over float did stay in the red zone mainly from cement and textile sectors while banking, fertiliser and E&P on likely growth in earnings and sensation of payouts kept the liquidity poised for accumulation, despite worrisome comments from international lenders and rating agencies, terming the existing political volatility likely threat for securing fresh loans from IMF,” said Hasnain Asghar Ali from Escorts Capital Ltd.

Foreign investors indulged in fresh buying on Monday as they bought shares worth a net $872,230 after selling a net $1.11 on Friday, bringing the total for this month at $4.84m.

Individuals were the major buyers with equity worth $2.54m.

The biggest gainer was Bata Pakistan which ended Rs20 higher at Rs1,250, followed by Mitchell’s Fruit Ltd which closed Rs15 higher at Rs395. Rafhan Maize witnessed the biggest loss as it shed Rs185 to Rs3,515 followed by Unilever Food, which ended Rs178 lower at Rs4,000.

The KSE-30 index ended 0.28pc, or 38.15 points, higher at 13,580.35.

Out of the 334 companies traded, the value of 156 increased, 146 decreased while 32 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 Cement topped the list as it ended 28 paisa higher at Rs15.92 on turnover of 16.12 million shares, Fauji Cement fell marginally 7 paisa to Rs7.30 on 13.58m shares and Byco Petroleum shed 8 paisa to Rs13.90 on 8.72m shares.

Jahangir Siddiqui Company Ltd fell 40 paisa to close at Rs15.30 on 8.6m shares, JS Growth Fund gained 94 paisa to Rs9.99 on 7m shares and TRG Pakistan ended 18 paisa lower at Rs6.93 on 6.5m shares.

Engro Foods increased by 30 paisa to Rs99.23 on 4.27m shares, Dewan Cement gained 6 paisa to Rs5.01 on 3.47m shares and National Bank of Pakistan fell 27 paisa to Rs48.82 on 2.86m shares.

Attock Refinery ended 59 paisa lower at Rs164.53 on 2.82m shares.