KARACHI
Led by oil sector, stocks on Wednesday closed bullish on improved OMC sales data for March 2015 and surge in WTI crude prices. The day ended on a positive note with the index finishing 286 points higher to end at 31,887 points, up by 0.9 per cent.
After the recent bullish streak, the market was dominated by profit-takers in Tuesday’s index. Higher OMC sales numbers along with MOL’s recent hydrocarbon discovery translated into a run in the oil & gas sector with PSO, POL, PPL and SHEL all ending 4.3%, 5.0%, 5.0% and 2.7% higher. Delay in proposed gas tariff hike coupled with 4% higher cement dispatch numbers resulted in investor confidence in cement and fertilizer scrips as DGKC, FCCL, MLCF, EFERT and ENGRO posted slight improvements.
A generally undervalued banking sector also posted slight recoveries with NBP being in the spotlight through the day, ending 3.5% higher, stated analyst Arhum Ghous. Volumes traded at local bourse remained at 256m shares (Rs14.0b/$143m). Govt decision to postpone gas tariff increase until July’15 played a catalyst role in positive sentiments and invited renewed institutional interest in textile, cement and fertilizer stocks. Banking stocks and gas marketing companies remained in pressure on weak earnings outlook.
Led by oil stocks, market resumed its bullish rally with improving volumes. IMF appreciating Pakistan’s economic reforms also helped sentiments. Increasing international oil prices and POL discovery announcement kept investors’ interest in oil stocks. POL and PPL closed at 5% upper limit. OGDC gained 2.4%, investment analysts observed. Cement stocks remained in the limelight after news report that the government is delaying gas price hikes that will benefit cement companies. Institutional support in PAEL was seen. PAEL closed 0.5% up with volumes remained 25m shares (Rs.1.44b/USD144m).