Market watch: Oil stocks break bearish spell at KSE

KARACHI: The stock market ended up on Thursday after a five-day bearish spell as investors accumulated energy stocks following a rise in international oil prices.

The Karachi Stock Exchange benchmark 100-share index ended 0.14 per cent or 15.84 points higher at 11,539.26.

The index gained more than 100 points in early trade but profit-taking pared gains later in the session, said Topline Securities equity dealer Samar Iqbal. A plunge in regional markets and worsening local political situation pulled the market down five per cent in the last five trading sessions.

“Owing to an increase in international oil prices, oil stocks remained higher,” added Iqbal. Pakistan Oilfields ended 0.31 per cent higher at Rs291.05 while Pakistan Petroleum Limited surged 1.7 per cent to Rs200.10.

Oil and Gas Development Company rose 0.9 per cent to Rs158.08 despite not announcing any payout with its results and a 14 per cent fall in net profit, much lower than market expectation.

Oil price surged more than 7.5 per cent to its highest since August 2008 in the world market on Thursday on concerns that uprising in Libya could spread to other major oil producers in the Middle East, including Saudi Arabia.

Trading volume fell to 80.2 million shares compared with 100.49 million shares traded on Wednesday.

Pakistan Telecommunication Company Limited saw selling pressure after its result announcement during the trading session, said Iqbal. The scrip fell Rs0.42 to close at Rs18.19.

Shares of 655 companies were traded on Thursday. At the end of the day, 95 stocks closed higher, 184 declined and 376 remained unchanged. The value of shares traded during the day was Rs2.94 billion.

Jahangir Siddiqui and Company was the volume leader with 6.18 million shares, losing Rs0.83 to finish at Rs8.86. It was followed by Azgard Nine Limited with 5.39 million shares, falling Rs0.48 to close at Rs9.15 and Bank of Punjab with 4.87 million shares, declining Rs0.29 to close at Rs6.79.

Published in The Express Tribune, February 25^th, 2011.