Market watch: Interest in oil shares takes bourse to another high

Benchmark KSE-100 index increases 150.20 points.

KARACHI: The trading in equities opened positive on Tuesday and continued to push the market to fresh highs with the benchmark index closing above 34,800 points.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index closed the day’s trading with an increase of 0.43% or 150.20 points at 34,826.51.

Elixir Securities analyst Haris Ahmad Batla said that the recovery in international crude prices sparked interest in heavyweight oil exploration companies that had lagged behind in the recent rally, pushing up Oil and Gas Development Company (OGDC +2.3%), Pakistan Petroleum (PPL +2.8%) and Pakistan Oilfields (POL +4.7%).



Oil marketing giant Pakistan State Oil (PSO +2.9%) continued to remain in the limelight on local institutional interest over government’s focus on resolving the circular debt issue. Cement shares, however, made an intra-day attempt to pull the index in the red as investors swapped positions with oil plays, he said. JS Global analyst Arhum Ghous was of the view that the market opened on a positive note and later juggled between the red and the green zone.

“Profit-taking was witnessed in the cement sector as Maple Leaf Cement (MLCF), Pioneer Cement Limited (PIOC) and Fauji Cement Company Limited (FCCL) closed down 1.7%, 2.4% and 2.6% respectively.”

“Pharma sector saw mixed sentiments as the bureau asked the government to review the drug pricing policy,” added Ghous.

Trade volumes rose to 344 million shares compared to 327 million on Monday.



Shares of 384 companies were traded. The value of shares traded during the day was Rs20 billion. Pakistan International Bulk Terminal was the volume leader with 34.7 million shares, gaining Rs1.91 to close at Rs40.14. It was followed by K-Electric Limited with 30 million shares, losing Rs0.23 to close at Rs8.53 and Power Cement Limited with 29.4 million shares, gaining Rs0.75 to close at Rs8.15. Foreign institutional investors were net sellers of Rs357 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, February 4^th, 2015.

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