KARACHI:
After a tumultuous week, the index opened positive on the back of oil stocks gaining stability and foreign buying in major sectors keeping the momentum high.
At close, the Karachi Stock Exchange (KSE) benchmark 100-share index increased 1.55% or 480.47 points to end at 31,491.62.
Elixir Securities analyst Faisal Bilwani said Pakistan equities closed higher tracking gains in regional markets. “This was a result of oil stocks covering some of its recent losses,” said Bilwani.
“Higher international crude pushed listed exploration and production up with Oil and Gas Development Corporation (OGDC, +2.4%) and Pakistan Petroleum Limited (PPL, +2.1%).
“Reports of foreign buying kept most index names in the limelight while domestic sentiment also remained positive with flows primarily in financials, energy and textiles.
“Reports of Economic Coordination Committee’s nod on Narowal tax exemption pushed Hub Power (HUBC, +3.8%) to hit upper lock intraday,” said Bilwani.
“Textiles gained on weekend with the help of comments by European Union’s envoy that helped ease fears of Pakistan losing GSP Plus status for exports after government lifted ban on capital punishment.
“Nishat Mills (NML, 2.8%) ended higher while Nishat Chunian (NCL, +5%) hit upper lock.”
Meanwhile, Arif Habib Corporation Limited CEO Ahsan Mehanti said stocks closed bullish ahead of the year end close led by selected stocks across the board on improved economic and political outlook.
“Institutional interest in oversold power sector and oil stocks played a catalyst role in bullish activity”, said Mehanti.
“Brent oil prices bounced above $60 and IMF approval on disbursement of $1.05 billion loan last week helped the index gain.”
Trade volumes increased to 181 million shares compared to 141 million on Friday.
Shares of 353 companies were traded on Monday. Of these, 150 companies declined, 183 closed higher and 20 remained unchanged. The value of shares traded during the day was Rs10.5 billion.
K-Electric Limited was the volume leader with 15.0 million shares, gaining Rs0.24 to close at Rs8.98. It was followed by the TRG Pakistan Limited with 13.1 million shares, gaining Rs0.78 to close at Rs14.56 and Lalpir Power with 7.3 million shares, gaining Rs1.09 to close at Rs30.05.
Foreign institutional investors were net buyers of Rs369 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, December 23rd, 2014.
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