KARACHI: The stock market closed in the black on Wednesday following gains in oil companies in the wake of investor interest with a rise in international crude prices.
At close, the Pakistan Stock Exchange’s benchmark KSE 100-share index recorded a rise of 1.25% or 421.54 points to 34,269.28.
Elixir Securities, in its report, stated equities ended 1.3% higher as the benchmark index rallied past 34K and tested 34,300 on gains in oil stocks and select index names.
“Oil stocks not only provided an early support following overnight gains in crude, but also triggered a sharp rally near the day’s end as global crude touched its highest in 2016,” said analyst Ali Raza.
“Oil and Gas Development Company (+4.9%) and Pakistan Oilfields Limited (+4%) closed near their upper price limits while Pakistan Petroleum Limited gained 3.4%; all cumulatively adding 135 points to the KSE-100 index.”
Besides oil shares, index-heavy Habib Bank Limited (+1.4%) and Engro Corp (+1.8%) also contributed to the day’s gains with the latter coming in the limelight on higher pay-out announcement (in its financial results), Raza said.
“Moreover, Nishat Mills Limited (+5%) also closed limit up as investors cheered its strong quarterly results released yesterday (Tuesday).”
Meanwhile, JS Global analyst Ahmed Saeed Khan pointed out that a rally in the cement sector came on the back of news that the National Electric Power Regulatory Authority (Nepra) had approved a Rs2.83 per unit cut in power tariff. Another report that China would give $4.1 billion in loans under the China-Pakistan Economic Corridor (CPEC) for building highways also lent vital support.
“Positivity prevailed in the banking sector on the back of better-than-expected first-quarter results and month-on-month increase in banking spread for March; Bank Alfalah Limited (+2.51%) and Faysal Bank Limited (+2.11%) both rallied after they announced better-than-expected results.
“As global crude oil prices continue their positive trajectory to trade above $46.50 (Brent), the oil sector continued its bull run as all major stocks closed in the green zone,” Khan said.
Trade volumes fell to 257 million shares compared with Tuesday’s tally of 258 million.
Shares of 379 companies were traded. At the end of the day, 231 stocks closed higher, 129 declined while 19 remained unchanged. The value of shares traded during the day was Rs12.5 billion.
Sui Northern Gas Pipelines (SNGPL) was the volume leader with 26.9 million shares, gaining Rs0.27 to finish at Rs33.55. It was followed by Dewan Motors with 14.1 million shares, gaining Rs0.42 to close at Rs14.46 and TRG Pakistan Limited with 13.1 million shares, gaining Rs0.26 to close at Rs35.52.
Foreign institutional investors were net sellers of Rs354 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, April 28th, 2016.
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