Hope ‘Oils up’ KSE Wheels

KARACHI: Karachi Stock Exchange (KSE) witnessed bullish activities Thursday as its main index gained over 1 per cent above 9,200 levels on continued foreign buying mainly in oil stocks and expectations of reduction in key discount rates after decline in T-bill yield.

The benchmark KSE 100-Index increased by 106 points - 1.16 per cent to close at 9,251 points, KSE 30-Index jumped by 130 points - 1.35 per cent to close at 9,774 points and KSE All Share Index grew by 70 points - 1.09 per cent to close at 6,555 points.

The Financial Daily, "Buying activity was recorded on continued foreign interest in oil and gas sector". The added that investors remained bullish as T-Bill yield reduced by 31bps in 12-month paper increasing expectations of discount rate cut.

Rise in international oil prices near $80, expectation of early approval of leverage products by the Securities and Exchange Commission of Pakistan (SECP) played a catalyst role in positive activity despite Peshawar blast, he added.

The day started on a positive note with a gain of 58 points, bulls then managed to sustain and green numbers gradually increased as buying continued mainly in oil and gas and banking stocks. The major reasons for the bullish activities were the expectations of reduction in interest rates as its chances have increased after decline in cut off yield of T-bills. On the other hand, continued buying by foreign investors also came to support market big time therefore index at about 1404 PST touched its intraday high of 9,283 points (+ve 138 points) and at the end closed near it highest levels.

Furqan Punjani told TFD that handsome foreign buying during last 3 sessions and expected decline in discount rate continued to be the positive triggers for the market. Furthermore encouraging oil & gas production numbers from Manzalai field triggered E&P stocks, especially POL.

According to the figures released by the National Clearing Company of Pakistan Limited (NCCPL), there was a net foreign buying of $2.2 million. However local individual investors did a net selling of $4 million.

Despite a bull run, investor participation was much depressed throughout the day as 108.2 million shares were traded which are 53.7 million shares less as compared to a turnover of 161.9 million shares a day earlier.