Stock Market Round up

Byline: SHABBIR H. KAZMI During 1QCY11, Karachi Stock Exchange market remained volatile but benchmark index managed to close with a marginal decline of 1.8% QoQ amid net foreign selling and uncertainty on political front. In blue chip sectors, major decline was witnessed in oil and gas sector, posting a decline of 12.6%. OGDC was merged a major contributor in the decline with overall sector declined by 21% during the quarter. As against this Food producers and Chemicals sectors supported the market, showing an appreciation of 25% and 24% respectively and outperforming the index by heavy margin. The top ten scrips posted a better risk adjusted return during 1QCY11 and outperformed the KSE-100 index by heavy margin. FFC, ENGRO and PACE turned out to be the most prominent performers. With expectations of improvement on macro economic front, SBP kept the discount rate unchanged at 14%, despite acknowledging the fear of the soaring inflation in near future.