Oil stocks lead the way as index ends higher

Benchmark KSE-100 index rises 153.29 points.

KARACHI: Oils led the gains, but investors remained cautious ahead of the budget announcement as volumes saw a significant slowdown.

At close on Friday, the Pakistan Stock Exchange’s benchmark KSE-100 index rose 0.42% or 153.29 points to end at 36,694.26.

According to Elixir Securities analyst Faisal Bilwani, equities closed positive ahead of the weekend with gains in oils and select financials pushing benchmark to settle near 36,700.



“In a recurring pattern, stocks started slowly with market hunting for direction, however, buying led by oils (Pakistan Oilfields, POL +4.3%) in the pm session (second half) helped close the day with respectable turnover.

“As expected, Engro Foods (EFOODS -1.7%) was lower in absence of any confirmation/ update on rumoured stake sale deal while the holding company, Engro Corp (+0.3%) closed marginally positive and avoided wrath of profit-takers as CEO announced, during an interview, ambitious expansion plans and a firmer footing in the energy space going forward.

“News of a 10% higher public spending budget for the next fiscal year with focus on infrastructure failed to generate any major excitement in cements as investors brace for a likely announcement of higher taxes in coming budget.

“Yet again, small and mids led the volumes and most speculative plays ended the day higher on retail participation.

“We see volumes to remain on the lower side next week as participants look forward to budget announcement while cherry picking in value plays, primarily financials and energy will keep benchmark to hover in a range of 500-700 points.”

Meanwhile, JS Global analyst Arhum Ghous said positivity prevailed in the market. “Slight recovery was seen in the banking sector, as MCB (+0.67%), HBL (+0.34%) and UBL (+0.95%) gained to close in the green zone.

“Hascol continued its upward trajectory to close on its upper circuit on the back of the news that the oil marketing company will establish a joint venture company with its partner, Vitol Dubai, to build and operate an oil storage capacity of 200,000 MT at Port Qasim.

“Ghani Glass (GHGL +2.27%) gained on the back of material information disseminated in the market that its Amber Pharma Glass Furnace facility in Landhi commercial area had started commercial operation.



“Moving forward, we remain bullish on the market and recommend accumulation on dips, ahead of MSCI Emerging Market reclassification decision.”

Trade volumes fell to 200 million shares compared with Thursday’s tally of 213 million shares.

Shares of 381 companies were traded on Friday. At the end of the day, 191 stocks closed higher, 163 declined while 27 remained unchanged. The value of shares traded during the day was Rs9.4 billion.

K-Electric was the volume leader with 17.8 million shares, losing Rs0.17 to finish at Rs7.77. It was followed by Byco Petroleum with 13.8 million shares, closing unchanged at Rs22.88 and TRG Pakistan with 12.7 million shares, gaining Rs0.70 to close at Rs37.61.

Foreign institutional investors were net sellers of Rs201 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, May 28^th, 2016.

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