KARACHI: After five trading sessions of continuous decline, the stock market finally recovered from the dark amid positive news for oil marketing companies on Tuesday. The KSE-100 benchmark index gained 68 points or 0.61% to end the day at 11,233.75 points.
Increase in oil marketing companies’ (OMC) margins invited some fresh buying in the sector, said Elixir Securities equity dealer Sibtain Mustafa. Key oil stocks rebounded after production numbers from Makori East were released posting 63% higher flows than initial estimates, and Pakistan State Oil (PSO) supported the positive mood after media reports of Economic Coordination Committee meeting to discuss hike in petrol and diesel margins pushed stock to trade near its upper lock, Mustafa added.
Sentiment remained positive, amid thin volumes, in blue chip scrips on strong valuations despite concerns for Standard and Poor’s downgrade ratings of B negative on Pakistan’s investment viability, said Arif Habib Investments Director Ahsan Mehanti.
Volumes continued to remain a drag with major investors sidelined eyeing low foreign institutional investor participation. Trade volumes remained at a dismal level of 26.8 million shares with a total value of Rs1.66 billion.
Foreign institutional investors were again net sellers of Rs59.3 million worth of shares during the trade session, according to data compiled by National Clearing Company of Pakistan Limited.
Shares of 100 companies rose while 103 companies declined and 89 remained unchanged.
Fauji Fertilizer Bin Qasim was the volume leader with 3.05 million shares gaining Rs0.91 to finish at Rs47.73. It was followed by Pakistan Telecommunication Company Limited with 1.83 million shares with a loss of Rs0.04 to close at Rs11.47 and National Bank of Pakistan with 1.78 million shares increasing by Re0.01 to close at Rs45.57.
Published in The Express Tribune, August 17th, 2011.