Market watch: Oil sector drives the bourse to a new record

Benchmark KSE-100 index gains 31 points.


Our Correspondent February 15, 2013
Trade volumes fell sharply to 263 million shares compared with Thursday’s tally of 313 million shares.

KARACHI: The local bourse closed in the black ahead of the weekend with the oil sector leading the gains amid subdued activity. Moreover, investor interest in the Pakistan Telecommunication Company supported the climb.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.18% or 31.4 points to end at 17,797.22 point level. Trade volumes fell sharply to 263 million shares compared with Thursday’s tally of 313 million shares.

In the morning session, the stock traded higher, however, lower than expected Engro Corporation’s results announcement ruined the mood.

“In the late session, while investors snoozed and were getting ready to call it a day, news flash of an investment commitment by the Abu Dhabi Group in Pakistan’s real estate and other sectors got telecoms and cements back on the charge,” reported Faisal Bilwani, analyst at Elixir Securities.

Shares of 386 companies were traded on Friday. At the end of the day 137 stocks closed higher, 184 declined while 65 remained unchanged. The value of shares traded during the day was Rs7.06 billion.

Disappointed investors booked profits in business conglomerate Engro Corporation after it announced good results but no pay out, said equity dealer Samar Iqbal at Topline Securities. However, the stock clawed back as investors see a resolution of the gas supply issues and possibly a great year ahead.

The PTCL closed at its upper limit as it continues rallying after its result announcement of Rs8.61 billion for the December quarter on the back of higher international call rates under the international clearing house arrangement. Stocks in Pakistan can only move up or down 5% per day in order to control volatility in the market.

The index-heavyweight Oil and Gas Development Company contributed 56 points alone to the index with volumes of 392,000 shares as production from the Sinjhoro gas field of 1,100 barrels per day of oil and 12 million cubic feet of gas per day commences, where OGDC has a 60% stake.

Pakistan Telecommunication Company was the volume leader with 28.76 million shares gaining Rs0.85 to finish at Rs21.95. It was followed by Telecard with 19.62 million shares losing Rs0.11 to close at Rs5.49 and Wateen Telecom with 15.06 million shares falling Rs0.14 to close at Rs3.84. Four of the five stocks on the volume leader board belonged to the telecom sector.

Foreign institutional investors were net buyers of Rs180.65 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, February 16th, 2013.

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