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KARACHI: Shares in fertiliser companies have taken centre stage on the country’s stock market, replacing the heavy-weight oil and gas exploration companies.
Four of the five stocks that witnessed the biggest volume of business on Wednesday represented the fertiliser sector: Fatima, the volume leader with 8.9 million shares; Engro at second place with 4.6 million shares, Fauji at fourth with 2.6 million shares and Fauji Fertiliser Bin Qasim at fifth with 2.4 million shares.
The resumption of gas supply to urea producers and its taper off, in turns, has placed fertiliser companies into sharp focus.
Several stock brokerage firms pushed notes in the market in the afternoon on Wednesday, quoting unnamed sources, saying that effective Thursday, Engro Corporation was to raise prices of urea by around Rs100 per bag to Rs1,580 per bag.
Differential would be collected on all the pending orders, they said. Engro Corporation, however, did not make an announcement of price increase, if any, at the stock market on Wednesday.
Analysts contended that the company had reversed its previous decision by raising urea prices by Rs100 (inclusive of sales tax) per 50 kg bag to Rs1,580 per bag (dealer transfer price).
Retail price for the farmer would stand close to Rs1,600 a bag effective from Thursday.
“The price-hike is primarily due to non-availability of gas to Engro new plant (Enven) since last 13 days in spite of government’s commitment to provide gas in December to meet higher demand in peak Rabi season,” said an analyst.
In line with past practice, other fertiliser producers were expected to raise prices in the next few days.
Market watchers said that a risk factor that had surfaced over the past few months was the government’s intention to impose (possibly from January 2012) gas cess on various sectors, including fertiliser to check rising gas demand.
