Market watch: Index ends higher, moves past 33,000

Benchmark KSE-100 index rises 122.65 points

KARACHI: The benchmark-100 index closed positive for the third successive day, going past the 33,000-point barrier as a surge in crude oil prices helped the index-heavy sector gain value.

At close on Friday, the Pakistan Stock Exchange’s benchmark KSE-100 index rose 0.37% or 122.65 points to end at 33,080.40.

Elixir Securities stated that equities finished up on the last day of the week, helped primarily by late-day gains in index heavy exploration and production (E&P) scrips. “Stocks had a positive start as participants tracked higher regional markets and a near 3% rise in global crude, and early gains were led by E&Ps and select cements.

“However, lack of activity in the wider market led benchmark KSE-100 index to surrender the morning gains, and the market oscillated around previous day’s close.



“During the second session, however, as Brent oil in the international market rallied past its recent high climbing to $42 per barrel, index heavy E&Ps surged again and pushed KSE-100 index to settle 123 points higher at close. Aside from E&Ps, other major sectors struggled to find a clear direction and closed mixed.”

Meanwhile, JS Global analyst Arhum Ghous said positivity in the market can be attributed to upward movement in the global equity markets and surge in crude oil prices. “Pakistan Oilfields (POL +2.51%), Pakistan Petroleum (PPL +3.53%) and Oil and Gas Dev. Company (OGDC +2.56%) in the E&P sector further extended their gain, as crude oil prices surged to trade above $40 per barrel (WTI).

“Dewan Farooque Motor Limited (DFML +8.91%) gained on expectation that the auto policy that is likely to be approved today by ECC will offer tax benefits to automobile assembler that have non-operational or closed assembly and manufacturing facilities.



“GLAXO (+0.72%) gained as investor ambiguity related to price of its spinoff company Glaxo Smith Kline Consumer Health Care Pakistan Limited got cleared, as the company in its notice disseminated in the market communicated the process that will be used to calculate its price.

“Investor interest was seen in both the gas utilities as Sui North Gas (SNGP +0.61%) and Sui Southern Gas (SSGC +3.29%) gained to close in the green zone.

“Going forward, we expect the market to sustain its positive momentum, and any negative variation in international oil prices will serve as a major risk to our view.”

Trade volumes rose to 173 million shares compared with Friday’s tally of 143 million shares.

Shares of 343 companies were traded on Friday. At the end of the day, 171 stocks closed higher, 147 declined while 25 remained unchanged. The value of shares traded during the day was Rs8.0 billion.

K-Electric was the volume leader with 26.5 million shares, gaining Rs0.13 to finish at Rs7.10. It was followed by Bank of Punjab with 11.3 million shares, gaining Rs0.28 to close at Rs9.01 and Fatima Fertiliser with 9.0 million shares, losing Rs0.48 to close at Rs32.32.

Foreign institutional investors were net sellers of Rs332 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, March 19^th, 2016.

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