Stocks inch up; gains in oil prices lift energy shares

Stocks inched higher on Tuesday as gains among energy shares more than offset weaker broader market, while fresh dealmaking activity lifted selected scrips, dealers said.

Ahsan Mehanti at Arif Habib Limited said stocks closed higher led by oil, banking and cement scrips on strong valuations.  “Midsession pressure was witnessed on concerns over $5.4 billion current account deficit for July-February 2016-17, however positive sentiments amid foreign inflows played a catalytic role in bullish close,” he added.

The Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 0.66 percent or 322.56 points to close at 49,020.21 points. KSE-30 shares index gained 0.53 points or 138.31 points to end at 26,249.60 points. As many as 403 scrips were active of which 294 advanced, 83 declined and 26 remained unchanged.

The ready market volumes stood at 225.178 million as compared to 134.748 million shares a day earlier.

Arham Ghous at JS Global said the market opened on a positive note and kept its previous trend as the index traded at intraday high of +362 points and intraday low of -21 points to finally close at 49,020 levels.

Pakistan Petroleum (PPL) gained 1.25 percent, Oil & Gas Development (OGDC) up 0.50 percent and Pakistan Oilfields (POL) rose 0.78 percent in the E&P sector. “Oil prices rose on expectations that an OPEC-led production cut to spur the market could be extended,” Ghous said.

In the power generation sector, K-Electric (KEL) closed 1.77 percent down on the back of the news that the National Electric Power Regulatory Authority (NEPRA) determined integrated multi-year tariff for K-Electric for seven-year period (2016-23) and reduced its base tariff to Rs12.07/unit from existing Rs15.57 a unit.

Besides, Hub Power Company (HUBCO) surged 0.64 percent as work on 1,320MW coal-fired power plant in Hub has commenced.

“Moving forward, we expect volatility to persist and recommend investors to stay cautious,” Ghous added.

Companies reflecting highest gains include Wyeth Pakistan up by Rs136.34 to end at Rs2863.31/share and Rafhan Maize up Rs100 to end at Rs7700/share.

Companies reflecting highest losses include Mari Petroleum down Rs53.43 to Rs1332.87/share and Thal Industries down Rs22 to end at Rs506/share.

Highest volumes were witnessed in K-Electric with a turnover of 36.062 million shares. The scrip shed 16 paisas to close at Rs8.87/share.

Aisha Steel Mill was second with a turnover of 25.594 million shares. It gained Rs1.16 to end at Rs24.52/share. Power Cement was third with a turnover of 10.60 million shares. It gained Rs1.0 to finish at Rs20.02/share.