KARACHI -  Stocks closed higher in the quarter-end earning announcements session at KSE on Wednesday after major surge in global stocks on expectations for US Federal Reserve to maintain stimulus efforts.

The benchmark KSE-100 share index showed recovery with 33.95 point or 0.15 percent and market closed at end of day at 22310.60 points as compared to 22276.65 points previous day.

Renewed foreign interest in selected stocks in oil and fertilizer sector, record earning announcements in textile, cement stocks played a catalyst role in positive sentiments despite concerns for economic uncertainty and outcome of Pak-IMF discussions for release of next tranche and SBP policy rate decisions after CPI data release for Oct’13 next week, market analyst Ahsan Mahenti stated.The KSE-All share index showed slight recovery with 15.64 points or 0.10 percent at the end of day and closed at 16263.85 points as compared to 16248.21 points,

KSE-30 share index also improved by 48.77 points or 0.29 percent to close at 16965.71 point while KMI-30 up by 236.15 points or 0.63 percent and closed at 37945.64 points. High and Low were 22400.12 and 22272.46 respectively.  

Samar Iqbal AVP Equity Sales Topline Securities stated following global equity markets, local bourse also showed some recovery after a decline in last two days. Although more stocks fell but rally in index heavy weight OGDC and PPL helped index to close in positive. Volumes however remained dull and activity remained confined towards mid cap stocks. FCCL led the volume followed by BOP, JSCL.

FFC gained 2.8pc after announcing September earnings of Rs.11.71 accompanied with 41pc cash dividend. PIOC, CHCC, MEBL, and AICL also announced their results.  Engro Corp closed 5pc down after unconfirmed news flow of interruption of gas supply to Engro Fertilizer while PPL witnessed renewed buying interest.

The corporate results were announced on Wednesday with most of the companies coming up with improve earnings.

Fauji Fertilizer (FFC) announced 9M2013 EPS of Rs11.71, up 8pc versus EPS of Rs10.84 in the same period last year. The result was also accompanied by third interim cash dividend of Rs4.1 that renders into 9M2013 payout of Rs11.35.

Despite stagnant offtake in 9M2013, topline of the company increased by 5pc to Rs52.5b.

Rise in cost of input (mainly that of fuel gas prices) increased cost of goods sold of the company. This in effect led to minor decline of 40bps to in gross margins which settled at 47.9pc in 9M2013 vs. 48.3pc in the same period last year.

Analysts said, though Pakistan equities are moving in a narrow band with low volumes, some good news on the corporate earnings front have come from the E&P sector. Profits of Pakistan’s largest listed sub-sector with market cap of $15.1b (30pc of total market cap) rose substantially in 1QFY14. Pakistan’s listed oil and gas explorers saw their earnings rising by 26pc versus 1QFY13 as revenues grew 17pc while higher non-core income further enhanced the bottom-line. And interestingly from the previous quarter ending June 2013 the earnings growth is even better at 93pc.