Market watch: Stocks end in the black as crude price surges
Benchmark KSE-100 index rises 116.10 points
PHOTO: AFP/FILE
KARACHI:
The stock market saw the index entering 31,300 levels by mid-day but the interest began to wane and the index fell but still ended in the black. The gains stemmed primarily from oil stocks as international crude price surged.
The Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share index rose 0.38% or 116.10 points to end at 31,065.13.
According to JS Global analyst Arhum Ghous, the market opened on a positive note as bullish sentiments backed by a surge in crude prices led the rally and the index made an intraday high of 374 points. However, it failed to sustain the level as crude lost value during later hours of trading.
“Stocks in the exploration and production sector like Oil and Gas Development Company (+2.15%), Pakistan Oilfields (+2.2%) and Pakistan Petroleum (+1.6%) surged intraday but towards the latter half of the day came under selling pressure.”
Sui Southern Gas Company (SSGC) closed at its upper circuit as investors expected the gas utility to declare a promising result in its upcoming meeting scheduled to take place on January 29.
“Ferozsons closed at its lower circuit as investors expected a higher dividend than the Rs10 per share declared by the pharmaceutical company keeping in view the robust growth in its earnings,” the analyst said.
“Going forward, we expect the market to remain sensitive to the direction of global markets.”
Meanwhile, Elixir Securities in its report stated equities closed the day with trimmed gains, however, the index managed to close above 31,000 as the wider market rode in line with moves in regional markets and global commodities.
“Stocks opened up on gains in index-heavy oil stocks that tracked global crude, however, mid-day correction on news that Aramco will sustain its investments gave a good excuse to investors to book recent gains, primarily in POL and PPL.
“Aside from oil, most stocks witnessed limited interest with cement companies struggling to find a clear direction despite expectations of some exciting numbers in the upcoming earnings announcements.”
Trade volumes slightly fell to 129 million shares compared with Friday’s tally of 131 million shares.
Shares of 331 companies were traded. At the end of the day, 173 stocks closed higher, 135 declined while 23 remained unchanged. The value of shares traded during the day was Rs6.5 billion.
TRG Pakistan was the volume leader with 12.3 million shares gaining Rs0.42 to finish at Rs27.10. It was followed by Pace (Pak) Limited with 10.2 million shares gaining Rs0.40 to close at Rs6.38 and Japan Power with 8.4 million shares gaining Rs0.72 to close at Rs3.72.
Foreign institutional investors were net buyers of Rs203 million worth of shares during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, January 26th, 2016.
The stock market saw the index entering 31,300 levels by mid-day but the interest began to wane and the index fell but still ended in the black. The gains stemmed primarily from oil stocks as international crude price surged.
The Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share index rose 0.38% or 116.10 points to end at 31,065.13.
According to JS Global analyst Arhum Ghous, the market opened on a positive note as bullish sentiments backed by a surge in crude prices led the rally and the index made an intraday high of 374 points. However, it failed to sustain the level as crude lost value during later hours of trading.
“Stocks in the exploration and production sector like Oil and Gas Development Company (+2.15%), Pakistan Oilfields (+2.2%) and Pakistan Petroleum (+1.6%) surged intraday but towards the latter half of the day came under selling pressure.”
Sui Southern Gas Company (SSGC) closed at its upper circuit as investors expected the gas utility to declare a promising result in its upcoming meeting scheduled to take place on January 29.
“Ferozsons closed at its lower circuit as investors expected a higher dividend than the Rs10 per share declared by the pharmaceutical company keeping in view the robust growth in its earnings,” the analyst said.
“Going forward, we expect the market to remain sensitive to the direction of global markets.”
Meanwhile, Elixir Securities in its report stated equities closed the day with trimmed gains, however, the index managed to close above 31,000 as the wider market rode in line with moves in regional markets and global commodities.
“Stocks opened up on gains in index-heavy oil stocks that tracked global crude, however, mid-day correction on news that Aramco will sustain its investments gave a good excuse to investors to book recent gains, primarily in POL and PPL.
“Aside from oil, most stocks witnessed limited interest with cement companies struggling to find a clear direction despite expectations of some exciting numbers in the upcoming earnings announcements.”
Trade volumes slightly fell to 129 million shares compared with Friday’s tally of 131 million shares.
Shares of 331 companies were traded. At the end of the day, 173 stocks closed higher, 135 declined while 23 remained unchanged. The value of shares traded during the day was Rs6.5 billion.
TRG Pakistan was the volume leader with 12.3 million shares gaining Rs0.42 to finish at Rs27.10. It was followed by Pace (Pak) Limited with 10.2 million shares gaining Rs0.40 to close at Rs6.38 and Japan Power with 8.4 million shares gaining Rs0.72 to close at Rs3.72.
Foreign institutional investors were net buyers of Rs203 million worth of shares during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, January 26th, 2016.