Home > Market watch: Oil rally takes index into the blac

Market watch: Oil rally takes index into the blac

Benchmark KSE-100 index gains 173.33 points. PHOTO: AFP/FILE

Benchmark KSE-100 index gains 173.33 points. PHOTO: AFP/FILE

KARACHI: Led by a rally in the oil sector, the index was mostly dominated by heavyweight oil stocks that lent support to the bourse in reaching greener pastures.

At close on Wednesday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index recorded a rise of 0.52% or 173.33 points at 33,376.20.

Elixir Securities analyst said that equities closed the day positive after a volatile session where benchmark index traded in a range of 205 points. Stocks opened up in early trade primarily led by exploration and production (E&P) stocks as participants tracked the latest sharp surge in crude, said the analyst. “However profit booking at highs resulted in index drifting lower to its previous day’s close on thin volumes.”

The market recovered on the back of value buying in E&Ps with index heavy Oil & Gas Development Company (OGDC, 4.12%) and Pakistan Petroleum Limited (PPL,+4.00%) contributing most points to the index.

JS Global analyst Ahmed Saeed Khan said bulls dominated Wednesday’s session where volatility remained in the green zone as the index stayed between +192 points and +5 points to finally close up 0.52%.

“Positivity today was solely attributed to the oil sector, almost a 5% increase in global oil prices has been the main driver in the sector, where top performers today were Shell (+5.0%), Pakistan Petroleum Limited (+4.0%) and Pakistan Oilfields Limited (+3.4%).”

Khan said that cherry picking continued in the banking sector where three out of the big five banks closed marginally positive. “Decline in cement dispatches announced Tuesday for September took its toll on the sector, as the industry remained in the red zone throughout the day,” said Khan. “Major laggards of the sector were Power (-1.8%) and Maple Leaf Cement (-0.9%).”

Trade volumes fell to 132 million shares compared with Tuesday’s tally of 149 million shares.

Shares of 366 companies were traded on Wednesday. At the end of the day, 140 stocks closed higher, 204 declined while 22 remained unchanged. The value of shares traded during the day was Rs7.6 billion.

Byco Petroleum was the volume leader with 19.8 million shares, rising Rs0.88 to finish at Rs27.54. It was followed by TRG Pakistan Limited with 9.8 million shares, losing Rs0.02 to close at Rs33.32 and Hum Network with 6.6 million shares, gaining Rs0.20 to close at Rs16.55.

Foreign institutional investors were net sellers of Rs233 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, October 8th, 2015.

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