At close, the Karachi Stock Exchange (KSE) benchmark 100-share index increased 0.82% or 258.76 points to end at 31,724.33.
Elixir Securities analyst Haris Ahmed Batla said value buying in Oil and Gas Development Company (OGDC PA) along with banking stocks namely National Bank (NBP PA +1.04%) and United Bank Limited (UBL PA +3.96%) helped regain sentiments as the day progressed.
“Textile plays to the likes of Nishat Mills (NML PA +2.06%) and Nishat Chunian (NCL
PA +4.32%) turned green as investors placed bets on GSP Plus status to remain immune following recent imposition of death penalty in the country.
“Cements remained the dominant force with Maple Leaf Cement (MLCF PA +3.15%), Cherat Cement (CHCC PA +3.70%) and Pioneer Cement (PIOC PA +3.15%) expecting significant discount rate cut in the next monetary policy,” he said.
“We expect the index to remain upbeat and test 32,000 ahead of the financial year close led by cement and textile while index heavy oils will continue to track international oil price movement,” Batla concluded.
Meanwhile, JS Global analyst Arhum Ghous said the oil and gas sector saw some recovery on back of oil prices stabilising around $60 per barrel.
“Reports that Russia will lay a LNG pipeline from Karachi to Lahore reinstated interest in Engro Corporation (+0.65%) which is in the process of setting up the first LNG terminal in the country.
“The laggards consisted of the food sector with National Foods and Murree Brewery hitting their respective lower limit prices. After a 1,000-point correction the last week, stabilising oil prices and year-end window dressing of portfolios by local institutions is expected to keep positive momentum going,” said Ghous.
Trade volumes increased to 244 million shares compared to 181 million on Monday.
Shares of 380 companies were traded on Tuesday. Of these, 139 companies declined, 216 closed higher and 25 remained unchanged.
The value of shares traded during the day was Rs11.4 billion.
K-Electric Limited was the volume leader with 24 million shares, gaining Rs0.22 to close at Rs9.20. It was followed by the Bank of Punjab with 19.1 million shares, gaining Rs0.39 to close at Rs10.37 and TRG Pakistan Limited with 16 million shares, gaining Rs0.63 to close at Rs15.19.
Foreign institutional investors were net buyers of Rs563 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, December 24th, 2014.
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