KSE in bullish run, gains 102.40 points

Posted on 9 months ago

F.P. Report
KARACHI: After a breather, the Karachi share market resumed the bullish run on Thursday led by oil and gas sector on expectations of healthy payouts.
“Robust activity was witnessed in the E&P sector mainly by the local institutions who found the sector stocks safe haven,� said Hasnain Asghar Ali at Escorts Capital.
The KSE-100 shares index gained 102.40 points or 0.68 percent to close at 15253.71 points. KSE-30 shares index gained 79.87 points or 0.61 percent to end at 13070.42 points. Shares of 325 companies were traded of which 198 scrips advanced, 101 declined and 26 remained unchanged.
Samar Iqbal, a dealer at Topline Securities said that the index heavy weight oil and gas sector remained investors’ darling with positive sentiment created by expectation of healthy payout by Pakistan Oil Fields and NRL. “In addition, investors’ interest was also seen in telecom sector amid renewed hope of ICH related development. This spread to across the board buying which helped index to close at 52 weeks high. Volume remained healthy as it clocked above 200 million shares�.
Dealers said that volumetric gains allowed the benchmark to re-initiate the rally after a technical breather in previous session, while PTCL maintained gains on hefty volumes and other stocks sustained gains on renewed buying on dips. Prominent amongst the gaining volume leaders were large cap banking stocks showing improvement in corporate profitability along with communication stocks, this time probably on 3G license sensation.
Shakir Padela t JS Global said that the KSE 100 index continued with its positive momentum. Major gainer of the day was oil and gas sector with refineries gaining on the expectations of payout with the upcoming result and increasing refining margins.
“NRL closed the day on its upper circuit while ATRL also gained 4.2percent. POL also gained 2.2percent as market participants are expecting cash and hefty bonus dividend with the upcoming full year result. Fertilizer sector on the other hand came under selling pressure after dismal fertilizer sales number for the month of July�.
According to analysts, deteriorating law and order situation, negativity in regional and international equities and commodities along with fragile state of economic and financial front, stays a point of concern for the prospective participants, thus restricting the turnover.
The ready market turnover stood at 223.722 million shares compared with 203.644 million shares in the last trading session.
Highest volumes were witnessed in PTCL with trades of 23.899 million shares. The scrip gained 62 paisas to close at Rs17.04. It was followed by Telecard with 18.992 million shares. It gained 31 paisas to close at Rs2.75. JSCL was the third with trades of 16.571 million shares. It shed 85 paisas to finish at Rs14.75.
Meanwhile, uncertainty over prospects for economic stimulus measures from the U.S. Federal Reserve pulled world shares lower on Thursday, but the euro edged up after China voiced some support for the debt-laden currency bloc.
A successful Italian bond sale also pointed to growing confidence among investors that the European Central Bank will live up to its words and take measures shortly to tackle the 17-member euro-zone's debt crisis.
But most investors were content to wait for a speech by U.S. Fed Chairman Ben Bernanke at a conference in Jackson Hole, Wyoming, on Friday, which is seen as pivotal to market expectations over the central bank's next move.
Investors and economists have become more sceptical over the past two weeks that the Fed will announce another round of bond buying, or "quantitative easing" (QE), at its mid-September meeting, according to Reuters polls over the last week.
However, the nervous tone of markets guarantees anything the Fed's chief does say about the economic outlook or the prospects for more QE could have a significant impact.

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