KARACHI: Pakistani stocks ended more than 1.3 percent higher on Tuesday on the back of strong foreign purchases following an increase in international oil prices, dealers said.
The Karachi Stock Exchange’s benchmark 100-share index ended 1.36 percent, or 143.60 points, higher at the level 10,681.87. Volume was 108.16 million shares compared with 80.54 million shares traded on Monday.
“The rise in international oil prices verging on $84 per barrel played as a catalyst role for the positive activity in the market,” said Ahsan Mehanti, director at Arif Habib Investments Ltd. Global oil prices rose on Tuesday, ahead of an expected decision by the Federal Reserve to pump more money into the US economy and was trading at $83.31 a barrel in international market.
Energy companies have traditionally been strong performers on the bourse. The energy sector has the heaviest weightage on the KSE index. Pakistan Oilfields (POL) rose 2.49 percent to end at 245.27 rupees, while Oil and Gas Development Co Ltd (OGDC) gained 0.53 percent to 154.69 rupees. However dealers said investors were awaiting the outcome of meetings between International Monetary Fund and Pakistani officials, to discuss the possible release of the sixth tranche of an $11 billion emergency loan agreed in November, 2008.
Policy level meetings are expected to resume on Wednesday. On the currency front, the rupee ended firmer at 85.65 to the dollar, compared with Monday’s close of 85.87/92 to the dollar because of fresh inflow of the greenback in the market, despite a rise in international oil prices, dealers said.
LSE stages impressive recovery
LAHORE: The Lahore Stock Exchange (LSE) remained bullish on Tuesday with an astounding recovery in volume. The oil sector remained the centre of attraction for the investors.
The LSE 25-shares index accumulated 39.88 points to close at 3,320.55 against its opening at 3,280.67 levels. Volume of the market remained 7.87 million shares, which was 3.81 million shares greater than Monday’s turnover of 4.06 million shares.
Out of 117 active scrips, 56 went up, 15 dwindled and 46 showed no change in their opening values. The Bank of Punjab, with a turnover of 1.67 million shares was the leader in terms of volume and added Rs 0.82 to close at Rs 9.33 against its opening at Rs 8.51.
Lotte Pakistan PTA followed suit and had a turnover of 1.06 million shares, gaining Rs 0.22 to close at Rs 10.33 against its opening at Rs 10.11. PSO was the major gainer followed by Shell Pakistan. PSO surged by Rs 13.16 to close at Rs 276.28 against its opening at Rs 263.12, while Shell Pakistan added Rs 9.12 to close at Rs 191.46 against its opening at Rs 182.34. Service Industries, with a turnover of 50 shares, was the major loser as it lost Rs 9.88 to close at Rs 187.72 against its opening at Rs 197.60. Staff Report
In the money market, overnight rates rose to 11.15 percent, compared with Monday’s close of 10.50 percent after the State Bank of Pakistan sold treasury bills worth 36.5 billion rupees ($426 million) to mop up liquidity from the interbank market.
Dealers stated they are awaiting a treasury bill auction, scheduled for Wednesday, with a target of 150 billion rupees ($1.75 billion) and the next scheduled inflows are on Thursday and amount to 136 billion rupees ($1.58 billion).
