market watch: Oil sector helps index glide up

Benchmark 100-share index increases 401.83 points

KARACHI: The oil sector emerged as the winner of the day as global crude prices picked up, pushing the benchmark-100 index up over the 35,600 level.

Positive results in the fertiliser sector and anticipation of profits in various companies helped the Karachi Stock Exchange (KSE)-100 index move up after it saw a terrible start to the week.

At close on Wednesday, however, the index ended at 35,676.49 points, increasing 1.14% or 401.83 points.



Elixir Securities analyst Faisal Bilwani said equities gained to close above 35,600 on reported foreign buying. “Local institutions were also active in index names,” said Bilwani. “Morning news of Coalition Support Fund money brought macro positives in the limelight while earnings season excitement helped regain confidence.

“Lagging oil stocks were surprise gainers with Oil & Gas Development Co (OGDC, +3.6%) trading highest volumes since end April. Pakistan Petroleum (PPL, +1.7%) also closed up on reported foreign buying.

“Fauji Bin Qasim (FFBL, +.2%) ended marginally positive after announcing results. Fertiliser stocks were up ahead of earnings announcement this week,” said Bilwani.

“Habib Bank (HBL, 2.8%) led financials to close positive on thin volumes while cements were mixed as investors await monthly sales data that may be less encouraging given the monsoon season.”



Meanwhile, JS Global analyst Ahmed Saeed Khan said the market continued with its bullish momentum. “Fertiliser sector remained in the limelight, as FFBL announced its result in line with market expectations, while favored scrips such as FATIMA (+3.02%) and FFC (+1.69%) rallied shortly afterwards.”

“The oil sector remained positive as investors decided on cherry picking the discounted scrips. Winners in the sector were PPL (+1.70%), Pakistan Oilfield Limited (+1.77%), OGDC (+3.62%) and Attock Refinery Limited  (+4.98%).”

Shares of 393 companies were traded on Wednesday. Of these, 203 companies closed higher, 169 fell and 21 remained unchanged.

Trading volumes decreased to 352 million compared to 362 million on Tuesday.

Pakistan Telecommunication Limited was the volume leader with 18 million shares, gaining Rs0.36 to close at Rs22.11. It was followed by TRG Pakistan Limited with 17.8 million shares, losing Rs0.04 to close at Rs43.50 and Silk Bank (R) with 17.7 million shares, losing Rs0.05 to close at Rs0.33.

Foreign institutional investors were net buyers of Rs167 million worth of shares during the session, according to data compiled by the National Clearing Company of Pakistan.

Published in The Express Tribune, July 30^th, 2015.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.