Saturday September 30, 2023

Oil shares lift stocks as crude prices surge

By Our Correspondent
September 20, 2023

Stocks rose for a second day, led by gains in oil and gas companies, as global crude prices climbed and the government took steps to curb circular debt in the energy sector, traders said.

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index closed higher by 107.28 points or 0.23 percent to close at 45,910.47 points. The highest index of the day remained at 46,036.04 points while the lowest level was recorded at 45,850.20 points.

“Stocks closed bullish led by oil stocks amid surging global crude oil prices and government steps for gas price adjustments to curb circular debt,” said Ahsan Mehanti, an analyst at Arif Habib Corp.

He said that industrials outperformed on rupee recovery and reports of higher cotton production raising textile exports played a catalytic role in a positive close.

The KSE-30 index also gained 26.34 points or 0.16 percent to close at 16,138.57 points. Traded shares increased by 14 million shares to 117.145 million shares from 103.494 million shares. The trading value rose to Rs4.110 billion from Rs3.296 billion. Market capital expanded to Rs6.794 trillion against Rs6.763 trillion. Out of 323 companies active in the session, 160 closed in green, 136 in red and 27 remained unchanged.

Nabeel Haroon, an analyst at Topline Securities, said another dull session was observed at the exchange as the index gained 0.23 percent points to close at 45,910 level, and investor participation remained at the lower end as traded volume and value for the day stood at 117 million shares and Rs4.1 billion, respectively.

Major positive contributions to the index came from UBL, TRG, THALL, OGDC and MTL as they cumulatively contributed 107 points to the index, whereas FFC, MCB, HUBC, LUCK & SYS lost value to weigh down on the index by -49 points.

The highest increase was recorded in Nestle Pakistan, which rose by Rs100 to Rs7,100 per share, followed by Bhanero Tex., which increased by Rs65 to Rs990 per share. A significant decline was noted in Sanofi-Aventis, which fell by Rs56.92 to Rs702.08 per share, followed by Mehmood Tex., which decreased by Rs40.27 to Rs496.70 per share.

Brokerage Arif Habib Ltd said the benchmark index continued its flirtation with the 46,000 points mark on an intraday basis but closing above this level remained elusive.

Yousuf Weaving remained the volume leader with 11.645 million shares which closed higher by 16 paisas to Rs2.93 per share. It was followed by SEARLR2 with 7.363 million shares, which closed lower by 25 paisas to Re0.77 per share.

Other significant turnover stocks included Bankislami Pak., Cnergyico PK, Pak Refinery, WorldCall Telecom, Kohinoor Spining, Pak Petroleum, Sui North Gas and Oil & Gas Dev. Shares’ turnover in the future contracts decreased to 27.384 million shares from 27.783 million shares.