KARACHI – The bourse continued to surprise local investors as the benchmark index soared, climbing by 240 points during the day. However a slight correction in the closing hours brought the index down to 12,323 level. The KSE-100 index gained 183 points at the close of the day, with volumes of 144 million shares.
Energy companies led the charge with POL emerging the star performer in response to reported prospect of a discovery in the Tal block. The KSE 100 index closed at 12323.47 with a gain of 182.63 points, while total volume stood at 112,086,311 along with total value of 7,573,198,128.
POL jumped 3.8 percent, followed by PPL showing strong gains of 2.2 percent, while OGDC hit its maximum five percent upper limit during the day albeit with low volumes, closing up 3.5 percent at Rs 178.81. Banks witnessed mixed fortunes today, while among fertilisers, Engro gained 2.1 percent with increased local institutional buying.
The leading stocks for oil and gas exploration stocks invited aggressive activity that pulled the bourse from stagnating and massive rate appreciation gave daring day traders ample trading opportunities.
Amongst the bellwether banking sector scripts, NBP lead the gains while KAPCO outshined the benchmark amongst dividend plays. After heightened buying, a correction appears to be imminent. Though momentum did encourage heightened speculative activity, various reports pertaining to discoveries and high off-shore influx did allow the stocks to trade at new highs. Evaluating the likelihood of a review of the fuel price increases and its tough financial implications on fiscal along with its political repercussions kept domestic participants in a cautious mood during trading.
Uncertainty mounted due to an objection raised by senate committee on the appointment of the new SECP chairman, thus restricting the outlook on investments, despite strong support by the index heavy weights.
Availability of stocks with a history of consistent payouts will continue to invite renewed buying interest if the current from is maintained, however historic data should not be part of investment decision in case the stock is faced with high and inefficient debt, noted Hasnain Asghar Ali.
A gloomy economic, financial and now political outlook will continue to make investors nervous while a short-term strategy is recommended, he added. The bullish outlook on international oil prices influenced price performance despite the overall economic outlook.
