Market watch: Positive news flow takes index higher by 487 points

Benchmark 100-share index gains 1.51%, ends at 32,736.43.

KARACHI: As several positives combined, the index saw an exceptional day as the market inched towards close to the 32,800-point mark. From Finance Minister Ishaq Dar’s hint at slashing the discount rate to Moody’s statement of terming Habib Bank privatisation transaction positive, the index gained after a lacklustre week.

At close on Thursday, the benchmark Karachi Stock Exchange (KSE) 100-share index stood at 32,736.43, registering a rise of 1.51 % or 487.57 points.



Elixir Securities Faisal Bilwani said equities opened positive on hints of further monetary easing. “Additionally, Moody’s statement on the recent Habib Bank (HBL) privatisation transaction that fetched over $1 billion, is credit positive, boosted confidence,” said Bilwani.

“Oil stocks led from the word go with Oil and Gas Development Company (OGDC, +2.2%), Pakistan Oilfields Limited (POL, +2.9%) and Pakistan Petroleum Limited (PPL, +3.9%) trading positive as global crude sees sharp recovery (benchmark Arabian Gulf Arab Light up near 19% month to date).”

Fertilisers also gained after the Supreme Court declared gas cess as a fee and illegal.

“With momentum gaining strength, reports of foreigners buying in index names during mid day further pushed benchmark KSE100 to end above 32,700 with select cements the only bluechips to close negative.”

JS Global analyst Muhammed Mobeen said the market remained largely bullish.

“Market participants remained largely bullish across the board,” said Mobeen.

“A sharp recovery helped the oil and gas sector to post strong recoveries with HASCOL, PSO, PPL, OGDC and SHEL all ending higher by 5%, 1.3%, 3.9%, 2.2% and 2.9%, respectively.”

Mobeen said that rumours surfaced that Byco may post profits after a history of losses attracted investor interest.

“Amongst significant news, PAEL continued its upward journey to close at Rs64.75, up by 4.3%.”

Trade volumes rose to 372 million shares compared to 225 million on Wednesday.



Shares of 370 companies were traded on Thursday. Of these, 97 companies declined, 247 closed higher and 26 remained unchanged. The value of shares traded during the day was Rs16.5 billion.

K-Electric Limited was the volume leader with 56.8 million shares, gaining Rs0.55 to close at Rs7.97. It was followed by Jahangir Siddiqui and Company with 24.1 million shares, gaining Rs0.86 to close at Rs22.10 and Bank of Punjab with 23 million shares, gaining Rs0.52 to close at Rs8.69.

Foreign institutional investors were net sellers of Rs270 million worth of shares during the session, according to data compiled by the National Clearing Company of Pakistan.

Published in The Express Tribune, April 17^th, 2015.