Market watch: Oil stocks lead the rally at KSE

KSE-100 ends 1.5% up on Wednesday, volumes down.

KARACHI: The oil sector, mainly exploration and production (E&P) companies, led gains at the local bourse amidst hopes of better-than-expected results and rumours of possible discoveries by leading E&P concerns, according to analysts.

The 100-share benchmark index at the Karachi Stock Exchange (KSE) gained 182.63 points, or 1.5 per cent, to end Thursday’s trade at 12,323.47 points.

“After a lacklustre start, equities showed a surprising turnaround led by the oil sector,” commented Sara Shahid from Elixir Securities.

“Pakistan Oilfields (POL) jumped 3.8 per cent, followed by Pakistan Petroleum Limited (PPL) showing strong gains of 2.2 per cent, while the Oil and Gas Development Company Limited (OGDCL) hit its upper limit during the day, closing up 3.5 per cent at Rs178.81,” highlighted Jawad Khan from JS Global Capital.

“Various rumours regarding discoveries and high offshore influx did allow the stocks to trade at new highs of recent times,” added Hasnain Asghar Ali from Aziz Fidahusein and Company.

Shares of 394 companies were traded on Thursday. At the end of the day, 237 stocks closed higher, 130 declined and 27 remained unchanged. The value of shares traded during the day was recorded at Rs7.9 billion.

Trade volume fell to 144.29 million shares – down 14 per cent from Wednesday. Lotte Pakistan PTA maintained its position as the volume leader with 12.45 million shares traded during the day. The scrip strengthened 17 paisa to close at Rs14.71 per share.

DG Khan Cement followed with a trade volume of 12.38 million, strengthening four paisa to close at Rs30.18.

Silkbank came in third with 7.26 million shares traded. “Banks witnessed mixed fortunes, while among fertilisers, Engro gained 2.1 per cent due to local institutional buying,” commented Jawad Khan.

Published in The Express Tribune, January 7^th, 2011.