Pakistan Petroleum came to the rescue and broke the stock market’s three-day downward trend on Thursday following news of the company’s board calling an unscheduled meeting.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.42 per cent or 51.97 points to end at 12,369.12 point level.
The country’s second largest oil and gas explorer announced its emergent board meeting on June 21 for a possible dividend payout, according to a notice on the Karachi Stock Exchange website. The company stock jumped 2.9% to close at Rs217.67. Hopes that better dividend streams would be witnessed from public sector enterprises regenerated a buying spree in the oil sector, said Samar Iqbal Equity Dealer Topline Securities.
However, apart from the oil sector, volumes remained confined in low priced stocks, added Iqbal.
Trade volumes fell to an alarming level of 46 million shares compared with Wednesday’s tally of 54 million shares. Number of shares traded halved against the 98 million shares average of June 2010.
Oil and Gas Development Company, another company of the oil sector, also gained 0.7%.
Foreign institutional investors were net sellers of Rs18 million during trade on Thursday, according to data maintained by the National Clearing Company of Pakistan Limited.
Among fertiliser stocks, Engro once again remained out of favour with investors despite a sharp decline of 9% witnessed during the last two weeks. The company’s new production plant has not been receiving the required gas to run at optimum level.
Shares of 336 companies were traded on Thursday. At the end of the day 110 stocks closed higher, 148 declined while 78 remained unchanged. The value of shares traded during the day was Rs2.3 billion.
Soneri Bank right shares were the volume leader with four million shares declining Rs0.07 to finish at Rs0.13. It was followed by Dewan Salman with 3.68 million shares gaining Rs0.08 to close at Rs3.04 and Fauji Cement right shares with 3.3 million shares losing Rs0.01 to close at Rs0.02.
Published in The Express Tribune, June 17th, 2011.
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