Market watch: Index powers past 33,100 with ease
Benchmark KSE-100 index rises 394.94 points
Benchmark KSE-100 index rises 394.94 points. PHOTO: AFP/FILE
KARACHI:
The index continued its recovery mode, closing over 33,000 - a level it has flirted with non-stop over the past few weeks - as investors moved towards attractive valuations of oversold stocks.
Despite tumbling oil prices, the index-heavy sector attracted interest as the benchmark-100 index sustained its positive movement throughout the day.
At close on Thursday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 1.21% or 394.94 points to end at 33,109.54 points
The market reacted to gains in the region after the US Federal Reserve raised interest rates, for the first time since 2006, in line with expectations.
Elixir Securities in its report said Pakistan stocks opened positive and sustained gains as benchmark KSE-100 increased steadily throughout the day and closed near its intra-day high. “Interestingly, gains were led by index heavy exploration and production as locals disregarded the slide in global crude and build positions in oil stocks due to their compelling valuations.
“The Oil and Gas Development Corporation (OGDC,+3.69%), Pakistan Petroleum (PPL, +5%) and Pakistan Oilfields (POL,+1.19%) closed higher, while Mari Petroleum (Mari, -2.8%) succumbed to profit-taking after gaining 35% since the start of December.
“Moreover, Engro Corp (Engro, +1.46%) gained on news of China approving investment of $1.2 billion in coal mining and power plant projects in which its JV Sindh Engro Coal Mining company has a stake.”
Meanwhile, JS Global analyst Ovais Ahsan said the KSE-100 moved up in sync with the euphoria in global markets post the US Fed’s decision to hike interest rates for the first time in a decade.
“The banking sector also continued to inch upwards as investors expect the interest rate cycle locally to reverse in 2016; HBL (+1.86%), MCB (+1%) and NBP (+2.2%) were major gainers in the sector,” said Ahsan.
Trade volumes decreased to 142 million shares compared with Wednesday’s tally of 149 million.
Shares of 337 companies were traded. At the end of the day, 232 stocks closed higher, 92 declined while 13 remained unchanged. The value of shares traded during the day was Rs9.9 billion.
TRG Pakistan Limited was the volume leader with 10.7 million shares, losing Rs0.45 to finish at Rs34.19. It was followed by Pak Elektron with 8.8 million shares, gaining Rs0.51 to close at Rs67.59 and OGDCL with 8.4 million shares, gaining Rs4.19 to close at Rs117.67.
Foreign institutional investors were net sellers of Rs518 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, December 18th, 2015.
The index continued its recovery mode, closing over 33,000 - a level it has flirted with non-stop over the past few weeks - as investors moved towards attractive valuations of oversold stocks.
Despite tumbling oil prices, the index-heavy sector attracted interest as the benchmark-100 index sustained its positive movement throughout the day.
At close on Thursday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 1.21% or 394.94 points to end at 33,109.54 points
The market reacted to gains in the region after the US Federal Reserve raised interest rates, for the first time since 2006, in line with expectations.
Elixir Securities in its report said Pakistan stocks opened positive and sustained gains as benchmark KSE-100 increased steadily throughout the day and closed near its intra-day high. “Interestingly, gains were led by index heavy exploration and production as locals disregarded the slide in global crude and build positions in oil stocks due to their compelling valuations.
“The Oil and Gas Development Corporation (OGDC,+3.69%), Pakistan Petroleum (PPL, +5%) and Pakistan Oilfields (POL,+1.19%) closed higher, while Mari Petroleum (Mari, -2.8%) succumbed to profit-taking after gaining 35% since the start of December.
“Moreover, Engro Corp (Engro, +1.46%) gained on news of China approving investment of $1.2 billion in coal mining and power plant projects in which its JV Sindh Engro Coal Mining company has a stake.”
Meanwhile, JS Global analyst Ovais Ahsan said the KSE-100 moved up in sync with the euphoria in global markets post the US Fed’s decision to hike interest rates for the first time in a decade.
“The banking sector also continued to inch upwards as investors expect the interest rate cycle locally to reverse in 2016; HBL (+1.86%), MCB (+1%) and NBP (+2.2%) were major gainers in the sector,” said Ahsan.
Trade volumes decreased to 142 million shares compared with Wednesday’s tally of 149 million.
Shares of 337 companies were traded. At the end of the day, 232 stocks closed higher, 92 declined while 13 remained unchanged. The value of shares traded during the day was Rs9.9 billion.
TRG Pakistan Limited was the volume leader with 10.7 million shares, losing Rs0.45 to finish at Rs34.19. It was followed by Pak Elektron with 8.8 million shares, gaining Rs0.51 to close at Rs67.59 and OGDCL with 8.4 million shares, gaining Rs4.19 to close at Rs117.67.
Foreign institutional investors were net sellers of Rs518 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, December 18th, 2015.