KARACHI: Oil stocks led the way on gains made by global crude prices as the benchmark-100 index crossed the 34,500 level to end positive for yet another session.
At close, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share index recorded a rise of 0.68% or 234.36 points to 34,503.64.
Elixir Securities analyst Ali Raza said Pakistan equities maintained their northbound ride.
“Stocks had a positive start as index heavy oils opened gap up with Oil and Gas Development Company (OGDC, +2.6%) leading on local institutional buying,” said Raza.
“Global crude maintaining its recent gains helped confidence while locals added OGDC to their holdings on hopes that aggressive foreign institutional investor selling is now done with.
“On the contrary, Pakistan Petroleum (PPL,-2%) succumbed to selling pressure and closed lower as the company announced lower-than-expected earnings.
“Market was also supported by financials that surged on local institutional buying; United Bank Limited (UBL, +2.3%) traded highest since mid-October, while Habib Bank (HBL, +2.1%) that have been a recent laggard contributed second-most points to KSE100 index,” said Raza.
“Whereas, the top-most contributor to day’s gains Hub Power (HUBC +3.3%) witnessed unusual moves and closed with significant gains as the company surprised investors with a quarterly cash payout of Rs3.5/sh.”
“Meanwhile, Nishat Mills (NML, +2.6%) closed its third consecutive session positive following release of better earnings.”
JS Global analyst Ahmed Saeed Khan said bullish momentum continued for the third consecutive day. “Positivity in today’s session was led by the banking sector that rallied on the back of better than expected results in first quarter of FY16 and month-on-month improved margins for the month of March,” said Khan.
“Pakistan Petroleum Limited (-2.0%) along with Hascol (-1.29%) came under selling pressure after both announced disappointing 9MFY16 financial results, thus dragging the sector down from its high,” said Khan.
“Profit taking was witnessed in the cement and fertiliser sectors.”
Trade volumes rose to 270 million shares compared with Wednesday’s tally of 257 million.
Shares of 376 companies were traded. At the end of the day, 179 stocks closed higher, 178 declined while 19 remained unchanged. The value of shares traded during the day was Rs14.5 billion.
Pak Elektron was the volume leader with 22.6 million shares, gaining Rs3.00 to finish at Rs63.19. It was followed by Power Cement Limited with 14.7 million shares, gaining Rs0.97 to close at Rs11.90 and Dewan Motors with 13.7 million shares, losing Rs0.55 to close at Rs13.91.
Foreign institutional investors were net sellers of Rs578 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, April 29th, 2016.
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