Market watch: Oil, gas stocks drive KSE-100 to 13-month high

Benchmark index increases 728.29 points to settle at 41,644.88

KARACHI: The bullish momentum continued at the Pakistan Stock Exchange on Monday as the KSE-100 index soared to a 13-month high after investors engaged in buying exploration and production stocks on news that Pakistan had invited Russia to invest in state-owned oil and gas firms.

Late last week, Pakistan invited Russia to participate in the divestment of government's shareholding in Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL) and become a strategic partner by acquiring shares.

The KSE-100 index soared as soon as trading began and maintained the uptrend till the end of the session. The trading session also saw the index cross the 41,500-point mark and move towards 42,000 points. Index-heavy sectors including automobile, cement and exploration and production posted substantial gains.

At close, the benchmark KSE 100-share Index recorded an increase of 728.29 points, or 1.78%, to settle at 41,644.88.

Arif Habib Limited stated in its report that the market touched a new 13-month high at 41,699 points during the session with the index going up by 782 points. The index closed near the day's high at 41,645 points (+728 points).

"The oil and gas chain remained in the limelight, particularly OGDC and PPL, which traded near and at their upper circuits respectively," it said.

Oil and gas marketing companies were traded the most with 86.7 million shares changing hands in the sector, mainly contributed by Hascol, which saw volume of 53.3 million. It was followed by banks (44.2 million) and cement sector (32.6 million).

Among individual stocks, Unity Foods and Sui Southern Gas Company followed Hascol with trading in 31.4 million and 16.1 million shares respectively, the report added.

JS Global analyst Danish Ladhani said equities closed on a positive note as the benchmark KSE-100 index gained 728 points and reached 41,645.

The market posted further gains, led by the oil and gas sector, on the back of news that Pakistan had offered Russia to participate in the divestment of government's shareholding in the country's largest state-run oil and gas explorers - OGDC and PPL - and become a strategic partner by acquiring shares.

"However, we believe the trend could remain bullish in the medium to long term on the back of continued improvements in macro indicators," he said. "Hence, profit-taking is likely to continue in the short term."

Overall, trading volumes increased to 357.8 million shares compared with Friday's tally of 270.7 million. The value of shares traded during the day was Rs14 billion.

Shares of 391 companies were traded. At the end of the day, 276 stocks closed higher, 96 declined and 19 remained unchanged.

Hascol (R) was the volume leader with 53.3 million shares, gaining Re1 to close at Rs13.66. It was followed by Unity Foods with 31.4 million shares, gaining Rs0.45 to close at Rs15.81 and Sui Southern Gas Company with 16.1 million shares, gaining Rs1.13 to close at Rs24.36.

Foreign institutional investors were net sellers of Rs329.9 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.