Market watch: Oil and textile lead rally, index closes shy of 31,000

Benchmark KSE-100 index gains 266.26 points

KARACHI:

The index opened positive, carrying momentum from Thursday’s session while flirting with the unprecedented 31,000-point barrier by recording an intra-day high of 30,999.

At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index increased 0.87% or 266.26 points to end at 30,930.04.

“Oils that remained laggard in the recent weak bounced back sharply over reported over subscription of Oil and Gas Development Company (OGDC PA +1.54%),” said Elixir Securities analyst Harris Ahmed Batla.



“Secondary offering at premium to floor price of Rs216 per share helped Pakistan Petroleum (PPL PA +2.49%), Pakistan Oilfields (POL PA +1.95%) and Pakistan State Oil (PSO PA +1.56%) to rally.

“Similarly, textiles regained the limelight to the likes of Nishat Mills Limited and Nishat Chunian Limited over the anticipation of margin expansions in the upcoming quarter while volumes chart remained dominated by small cap retails plays namely Jahangir Siddiqui Company Limited (JSCL PA 9.02%) and Pak Electron (PAEL PA +2.94%).

“We expect the market to retest 31k next week while the announcement on OGDC sell off price will guide direction for oil plays. We maintain our liking for PPL, ENGRO, HUBC and NML,” concluded Batla.

Meanwhile, JS Global analyst Fahad Ali said the market was expected to remain in the green zone and rally another 1,500-2,000 points in the coming few weeks.



Trade volumes slightly drop­ped to 274 million shares compar­­ed to 293 million on Thursday.

Shares of 400 companies were traded on Friday. Of these, 89 companies declined, 296 closed higher while 15 remained unchanged. The value of shares traded during the day was Rs13.2 billion.

Jahangir Siddiqui and Company was the volume leader with 18.9 million shares, gaining Rs1 to close at Rs12.09. It was followed by Pak Elektron with 10.7 million shares, gaining Rs0.86 to close at Rs30.13 and Soneri Bank Limited with 10.5 million shares, losing Rs0.26 to close at Rs15.53.

Foreign institutional investors were net sellers of Rs322 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, November 8^th, 2014.

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