Market watch: Energy sector powers KSE to record high

Index gains 150 points to close at 21,590.66.

KARACHI: On Thursday, the Karachi bourse continued on its history-making spree and this time the energy sector played the major role as local and foreign interest lead the market to a rebound which again closed above the 21,500-point levels thus cementing the level as major support. Stocks that are expected to be the major beneficiaries of the resolution of the circular debt remained as top-picks.

Moreover, abnormal activity in second- and third-tier low-priced stocks pushed the volume to touch a seven-year high.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.7% or 149.54 points to end at 21,590.66 point level. Trade volumes shot to 638 million shares compared with Wednesday’s tally of 485 million shares.



“Oils and independent power producers were in favour along with Pakistan State Oil, Oil and Gas Development Company and Pakgen Power stayed in the limelight as these scrips are expected to the major beneficiaries of the resolution of the circular debt issue and coal conversion,” reported Muhammad Rawjani, analyst at Elixir Securities.

However, momentum in the energy sector was marginalised by small- and mid-tier bargain stocks which have been delivering staggering returns.



Pakistan International Airlines hit its upper lock after the national flag carrier announced to add four planes to its fleet, while expectations of recapitalisation of Bank of Punjab by the Pakistan Muslim League – Nawaz government pushed the stock also to hit its upper limit.

Furthermore, investors also accumulated Jahangir Siddiqui and Company, JS Bank and Azgard Nine after reports clarified that the Group was not involved in any inquiries pertaining to market manipulation.

Shares of 403 companies were traded on Thursday. At the end of the day 241 stocks closed higher, 117 declined while 45 remained unchanged. The value of shares traded during the day was Rs13.12 billion.

Bank of Punjab (rights issue) was the volume leader with 83.54 million shares gaining Re1 to finish at Rs4.16. It was followed by Pakistan Telecommunication Company with 45.89 million shares gaining Rs0.69 to close at Rs21.6 and WorldCall Telecom with 32.22 million shares also gaining Rs0.23 to close at Rs3.4.

Foreign inflows were Rs577 million and outflows were Rs655 million, according to data maintained by the National Clearing Company of Pakistan.

Published in The Express Tribune, May 31^st, 2013.

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