Market watch: Stocks surge despite political noise
Ignoring all political concerns, the Karachi Stock Exchange continues bullish trend to gain 113 points on Wednesday.
KARACHI:
Ignoring all political concerns, the local bourse continued the bullish trend on Wednesday and closed at a 29-month high.
The Karachi Stock Exchange’s benchmark 100-share index ended 0.97 percent or 113.45 points higher at 11,786.09 – its highest close since July 2008.
Prime Minister Yousaf Raza Gilani on Tuesday sacked Religious Affairs Minister Syed Hamid Raza Kazmi and Science and Technology Minister Mohammad Azam Khan Swati, after which coalition partner Jamiat Ulema-e-Islam-Fazl (JUI-F) decided to back away from the federal alliance.
At the stock market, however, rumours of revaluations of oil stocks helped the market reach a new high and persistent offshore buying led the fresh rally, according to analysts.
“The sale of BP’s local assets to United Energy Group at $775 million stirred up better sentiments in the markets as it showed that the oil sector is worth more than its current levels,” said JS Global Capital analyst Mujtaba Barakzai.
The Pakistan Oilfields stock rose 1.69 per cent to Rs292.2 per share, while Pakistan Petroleum Limited (PPL) rose 4.67 per cent to Rs218. Index heavyweight Oil and Gas Development Company (OGDC) strengthened by Rs1.16 to close at Rs167.52 per share.
“PPL rose amid rumours of state institution buying and unconfirmed news that the government may soon offer convertible bonds of both PPL and OGDC to offshore investors,” commented a local equity dealer.
Apprehensions about the city’s security situation ahead of Muharram processions also forced local investors to stay on the sidelines as trade volumes dropped slightly to 120 million shares. The stock market and all banks will remain closed on Thursday and Friday on account of Ashura. Lotte Pakistan PTA remained the volume leader with a turnover of 11.19 million shares, increasing by Rs0.23 to Rs13.17. It was followed by WorldCall Telecom with 6.45 million shares traded, gaining Rs0.14 to Rs3.19. National Bank of Pakistan came in third with a turnover of 5.92 million shares, losing Rs0.56 to close at Rs70.76
Unilever Pakistan recorded the highest increase of Rs192.56 to Rs4,455.1, followed by Rafhan Maize which moved up by Rs69.64 to Rs2,149.65.
Shares of 404 companies were traded on Wednesday. At the end of the day 187 stocks closed higher, 199 declined while 18 remained unchanged. The value of shares traded during the day increased Rs7 billion.
Published in The Express Tribune, December 16th, 2010.
Ignoring all political concerns, the local bourse continued the bullish trend on Wednesday and closed at a 29-month high.
The Karachi Stock Exchange’s benchmark 100-share index ended 0.97 percent or 113.45 points higher at 11,786.09 – its highest close since July 2008.
Prime Minister Yousaf Raza Gilani on Tuesday sacked Religious Affairs Minister Syed Hamid Raza Kazmi and Science and Technology Minister Mohammad Azam Khan Swati, after which coalition partner Jamiat Ulema-e-Islam-Fazl (JUI-F) decided to back away from the federal alliance.
At the stock market, however, rumours of revaluations of oil stocks helped the market reach a new high and persistent offshore buying led the fresh rally, according to analysts.
“The sale of BP’s local assets to United Energy Group at $775 million stirred up better sentiments in the markets as it showed that the oil sector is worth more than its current levels,” said JS Global Capital analyst Mujtaba Barakzai.
The Pakistan Oilfields stock rose 1.69 per cent to Rs292.2 per share, while Pakistan Petroleum Limited (PPL) rose 4.67 per cent to Rs218. Index heavyweight Oil and Gas Development Company (OGDC) strengthened by Rs1.16 to close at Rs167.52 per share.
“PPL rose amid rumours of state institution buying and unconfirmed news that the government may soon offer convertible bonds of both PPL and OGDC to offshore investors,” commented a local equity dealer.
Apprehensions about the city’s security situation ahead of Muharram processions also forced local investors to stay on the sidelines as trade volumes dropped slightly to 120 million shares. The stock market and all banks will remain closed on Thursday and Friday on account of Ashura. Lotte Pakistan PTA remained the volume leader with a turnover of 11.19 million shares, increasing by Rs0.23 to Rs13.17. It was followed by WorldCall Telecom with 6.45 million shares traded, gaining Rs0.14 to Rs3.19. National Bank of Pakistan came in third with a turnover of 5.92 million shares, losing Rs0.56 to close at Rs70.76
Unilever Pakistan recorded the highest increase of Rs192.56 to Rs4,455.1, followed by Rafhan Maize which moved up by Rs69.64 to Rs2,149.65.
Shares of 404 companies were traded on Wednesday. At the end of the day 187 stocks closed higher, 199 declined while 18 remained unchanged. The value of shares traded during the day increased Rs7 billion.
Published in The Express Tribune, December 16th, 2010.