Market Watch: Bourse continues upward march led by oil stocks

KSE’s benchmark 100-share index surges 148 points.

KARACHI:

The stock market continued its upward march on Tuesday led by the oil sector amid rumours of foreign buying.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 1.22 per cent or 147.70 points to end at the 12,284.62 point level.

Rumours turned out to be true as data released after the trading session revealed that foreign institutional investors were net buyers of Rs313 million worth of shares, according to National Clearing Company of Pakistan Limited.

The market completely ignored International Monetary Fund and Moody’s dismal statement over the economy and fiscal deficit, claiming the views as stale and is believed to have factored in majority of economic issues, said Elixir Securities equity dealer Sibtain Mustafa.

Pakistan State Oil led the show as investors bet on better results that are scheduled to be announced tomorrow (Thursday) and likely intervention of the government to ease financial woes of the country’s largest oil marketing company. The stock rose Rs7.7 to close at Rs266.85.

Index giant Oil and Gas Development Company climbed 2.2% over rumours of foreign fund buying interest. Trade volumes fell to 162 million shares compared with Monday’s tally of 196 million shares.

Banking advance was led by Askari Bank hitting its upper circuit breaker ahead of its annual result announcement scheduled today (Tuesday).

The fertiliser sector particularly Fauji Fertilizer Company fell 1.4% on renewed fears of local urea prices correcting from current levels and its impact on earnings. Engro Corporation bounced back by rising 2.4% from lows on rumours of gas availability to its new plant Enven surfaced and rejuvenated interest in the scrip, said Mustafa.

Jahangir Siddiqui and Company was the volume leader with 30.35 million shares Rs0.43 to finish at Rs7.99. It was followed by Bank Alfalah with 12.71 million shares firming Rs0.31 to close at Rs12.81 and National Bank of Pakistan with 9.62 million shares gaining Rs1.30 to close at Rs46.59.

Published in The Express Tribune, February 8^th, 2012.