Stocks surge 110 points to 27-month peak

Soaring oil prices, foreign inflows, positive investors sentiment among the triggers.

KARACHI: Another buoyant day was seen at the stock exchange on Monday with interest in oil stocks pushing the index above 27-month peak level of 11,000 at intraday.

The Karachi Stock Exchange (KSE) benchmark 100-share index ended 1.01 percent or 110.28 points higher at 10,992.28, highest close since July 2008.

The stock market continued its drive upwards with rising commodity prices and continued foreign buying, said Topline Securities analyst Samar Iqbal. International oil prices are at a two-year high of $87.49 a barrel.

Pakistan Oilfields rose 1.46 percent to end at Rs259.75. The energy sector has the heaviest weightage on the benchmark index.

Foreign investors have bought shares total net shares worth $12.66 million this month.

Volumes jumped above 170 million, breaking the previous six months high as local sentiment remains positive mainly on account of aggressive participation by foreign funds and local liquidity.

Furthermore, the probability of the new leverage product being introduced soon further improved sentiments, added Muttalib.

News flows suggesting Pakistan and International Monetary Fund have agreed on a revised macroeconomic framework provided an early positive impetus, said an analyst.

Both leading cement stocks, Lucky Cement and DG Khan Cement closed at upper price limits on the back of improved margins and increased foreign Institutional investor interest, said Elixir Securities equity dealer Nazim Abdul Muttalib.

Nishat Mills Limited and Nishat Chunian Limited closed at their upper limits as well owing to cotton prices trading at an all time high, added analysts.

The stock market will be closed today (Tuesday) on account of Allama Iqbal Day.

Shares of 409 companies were traded on Monday. At the end of the day 244 stocks closed higher, 156 declined while 9 remained unchanged. The value of shares traded during the day was Rs8.49 billion.

Jahangir Siddiqui and Company was the volume leader with 23.71 million shares gaining Re1 to finish at Rs11.79. It was followed by Lotte Pakistan PTA with 18.03 million shares gaining Rs0.15 to close at Rs11.65 and Nishat Mills Limited with 10.78 million shares firming Rs2.65 to close at Rs56.04.

Published in The Express Tribune, November 9^th, 2010.