Equities rebounded sharply on Tuesday from the preceding day’s steep fall led by the oil and consumer goods sectors.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index surged 1.32 per cent or 160.16 points to end at 12,326.14 point level against fall of 195 points on Monday.
News flow suggest that Domail-II field – wholly owned by Pakistan Oilfields – entered its testing phase, leading to a surge in the stock with expectations of a oil and gas discovery, say analysts. The company’s stock, the tenth-most traded share on the market, jumped Rs11.53 to close at 358.87.
Its expected that the company will have a new round of earnings from its two major discoveries in addition to already rising earnings due to higher oil prices.
Nestle closed at its upper limit for the second consecutive day as investors scuttled towards defensive stocks at higher levels.
Engro continued to remain under pressure as the company’s head reportedly said that gas shortage issue will not be resolved in the near term, said equity dealer Sibtain Mustafa. The scrip fell Rs0.5 to close at Rs167.94.
Foreign Institutional Investors were gross sellers of Rs354 million and gross buyers of Rs231 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Trade volumes rose to 68 million shares compared with Monday’s tally of 51 million shares.
Furthermore, institutional buyers clocked in for Fauji Fertiliser Company as international urea prices climbed up to $550 per ton. Domestic urea prices are likely to follow suit, added Mustafa.
Shares of 346 companies were traded on Tuesday. At the end of the day 168 stocks closed higher, 78 declined while 100 remained unchanged. The value of shares traded during the day was Rs3.66 billion.
SilkBank was the volume leader with 10.16 million shares gaining Rs0.13 to finish at Rs2.98. It was followed by Engro Corporation with 6.86 million shares and Lotte Pakistan PTA with 3.93 million shares firming Rs0.3 to close at Rs14.52.
Published in The Express Tribune, June 22nd, 2011.
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