KARACHI: Positive news from MSCI about the start of a review procedure of the Pakistani market in order to upgrade it from the ‘frontier’ to ‘emerging’ status helped stocks maintain the momentum that had begun after the announcement of federal budget.
The market was led by third-tier companies, which are likely to announce higher dividend payouts and earnings. The global oil price increase and investor participation in fresh IPOs in the domestic market played the role of a catalyst in trading activity.
At close on Wednesday, the Karachi Stock Exchange (KSE) 100-share index recorded a rise of 0.16% or 53.56 points to end at 34,323.84.
Topline Securities reported that a new well discovery in the Tal block sparked investor interest in oil stocks. On the back of this, Pakistan Oilfields Limited went up by 2.47%, Oil and Gas Development Company gained 1.56% and Pakistan Petroleum Limited rallied 1.47%.
The bourse recorded a drop of 17% in volumes while trading value declined by 16% compared to a day ago.
Renewed interest was noted in consumer stocks like Engro Foods and Fauji Fertilizer Bin Qasim, which closed at the 5% upper limit, as investors build interest in the upcoming book building of Al-Sheer Corporation.
Trade volumes decreased to 332 million shares compared to 403 million on Tuesday. The value of shares traded during the day was Rs15 billion.
Shares of 374 companies were traded. Of these, 173 companies closed higher, 176 fell and 25 remained unchanged.
Byco Petroleum was the volume leader with 25.1 million shares, gaining Rs1 to close at Rs15.02. It was followed by PTCL with 21.7 million shares, gaining Rs0.52 to close at Rs21.26 and K-Electric with 20.8 million shares, losing Rs0.04 to close at Rs8.06.
Foreign institutional investors were net buyers of Rs393 million worth of shares during the session, according to data compiled by the National Clearing Company of Pakistan.
Published in The Express Tribune, June 11th, 2015.
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