KARACHI: Pakistan equities bounced back sharply to comfortably cross the 33,000-point barrier as investors tracked oil prices and seemed keen to inject money.
Despite foreigners being net sellers, index-heavy oil stocks led the rally with a bullish sentiment witnessed across most shares. While turnover remained low, the value of shares traded during the day was Rs8.5 billion.
At close on Tuesday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 1.27% or 417.93 points to end at 33,202.87.
JS Global analyst Arhum Ghous said bulls dominated the market with the oil sector leading the rally. “Due to the recovery in international oil prices, Pakistan Oilfields Limited (POL), Pakistan Petroleum Limited (PPL) and Oil and Gas Development Company (OGDC) closed up 1.96%, 3.96% and 3.40%, respectively.
“Pakistan State Oil (PSO +4.86%) closed near its upper circuit due to rumours of a clearance of circular debt being a condition for next IMF tranche.”
“Mixed sentiments were witnessed in the cement sector as dispatches witnessed a decline of 4% month-on-month in September 2015.
“Moving forward we expect the market to continue its rally.”
Meanwhile Elixir Securities, in its report, said the benchmark KSE-100 index closed near its intra-day high.
“Wider market opened positive as participants initially tracked gains in the region, but later oils supported the upward drive as participants found renewed interest in the sector after OPEC secretary predicted rise in crude prices.
“Cements, fertiliser and select financials also landed supported on reported institutional buying. Index heavy Habib Bank (+2.65%) contributed most points to the index, followed by OGDC (+3.40%) and PPL (+3.96%). Further, oil marketing companies PSO (+4.86%) and Shell Pakistan (+5%) also ended the day at the upper price limits.
“We see gains to consolidate in near term and expect range-bound trading in days ahead while participants will continue to monitor regional developments and foreign flows.”
Trade volumes fell to 149 million shares compared with Monday’s tally of 166 million shares.
Shares of 392 companies were traded on Tuesday. At the end of the day, 234 stocks closed higher, 138 declined while 20 remained unchanged. The value of shares traded during the day was Rs8.5 billion.
TRG Pakistan was the volume leader with 12.8 million shares, losing Rs1.52 to finish at Rs33.34. It was followed by Pak Elektron Limited (XD) with 9 million shares, gaining Rs0.54 to close at Rs80.22 and Byco Petroleum with 8.1 million shares, gaining Rs0.09 to close at Rs26.66.
Foreign institutional investors were net sellers of Rs957 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, October 7th, 2015.
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