December 02, 2016Print : Business
Oil-led rally sent stocks up on Thursday as the influential oil producing countries announced an output cut first time in the past eight years, dealers said.
“Exploration and production (E&P) sector led the gains in the market as OPEC (Organization of the Petroleum Exporting Countries), in a surprise move, agreed to a first production cut since 2008,” said analyst Nabeel Haroon at JS Research.
The E&P sector closed up 4.34 percent over its previous day close with crude oil prices surging to above $49/barrel level. POL and PPL were the major movers as they gained to close near their respective upper circuit.
The Pakistan Stock Exchange’s benchmark KSE 100-share Index closed up 0.67 percent or 284.99 points to 42,907.36 points. The highest index of the day remained at 43,275.79 points, while the lowest level of the day was recorded at 42,622.37 points. KSE 30-share Index also increased 0.65 percent or 148.62 points to end at 22,975.25 points.
Turnover increased 110 million shares to 504.43 million shares. Trading value rose to Rs18.07 billion from Rs13.62 billion and market capital closed higher at Rs8.73 trillion from Rs8.69 trillion in the last session. Out of 425 companies, 196 closed up, 217 ended down and 12 remained unchanged.
“Banking sector lost most of its intraday gain,” Haroon said.
HBL was down 1.47 percent and MCB (1.09 percent). They were the major losers.
“We expect bullish momentum to continue in the market and recommend investors to accumulate new positions on dips,” Haroon advised.
Analyst Ali Raza at Elixir Securities said the market caught up to the gains on relatively thin volumes and pushed the benchmark Index to its second-best all-time intra-day high.
“However, the Index couldn't sustain that level for long and gradually skidded lower to lose more than half of points on profit-booking,” Raza said.
“We expect the market to extend current rally mainly supported by gains in E&Ps,” he added. “However, volatility is likely to remain higher as concern over foreign outflows persists.”
Highest increase was recorded in Mari Petroleum. Its stock price rose Rs52.45 to Rs1,101.63/share, followed by Philip Morris Pak that was up Rs49.83 to Rs2,243.38/share. Major decrease was noted in Wyeth Pak Ltd. Its share price fell Rs123.20 to Rs4,119.80/share, followed by Island Textile that was down Rs58.15 to Rs1,110/share.
Significant turnover was recorded in stocks of Bank of Punjab, Pace (Pak) Ltd, K-Electric Ltd, Pervez Ahmed, Prud Mod 1st XD, Dolmen City REIT XD, Media Times Ltd, Engro Polymer, Byco Petroleum and Chenab Ltd (Pref).
Bank of Punjab remained the volume leader with 40.70 million shares with a drop of 87 paisas to Rs18.64/share. It was followed by Pace (Pak) Ltd with 20.58 million shares with a decrease of 23 paisas to Rs12.93/share.
Turnover in the future contracts increased to 49.78 million shares from 41.53 million shares traded in the previous session.