With foreign selling peaking to new highs, Karachi stocks Thursday regained 424 points in a rally led by recovery in international oil prices. The benchmark KSE-100 index hit the intraday high of 34,005.69 points before closing the day at 33,961.29. Analysts attributed the bull-run to rally in global equity markets.
"Following the rally in global equity markets, the KSE-100 index also extended gains to make an intraday high of +1.4 percent," JS analyst Ahmed Saeed Khan said. Ahsan Mehanti, a director at Arif Habib Corp, said KSE indexes witnessed strong recovery as bullish rally in global stock markets impacted investor sentiments.
The oil sector provided major support to the otherwise jittery stocks market after international crude oil prices rebounded. POL, ATRL and HASCOL led the sector with 4.4, 1.4 and 4.9 percent gains. "The KSE-100 index spiked 1.25pc at close amid recovery in global oil prices and finance minister's remarks for stable economic outlook and integrated Pakistan Stock Exchange into MSCI Emerging Market status by 2016 played a catalyst role in bullish close," said Mehanti.
Continued foreign outflows, however, is what keeps haunting the market players at the Karachi bourse, which soon would merge Lahore and Islamabad stock exchanges to become Pakistan Stock Exchange. Thursday saw offshore investors selling net portfolios of $5.168 million, taking total outflows to $82.158 million since Monday, August 17.
"Continuous foreign selling is expected to create a little uneasiness amongst local investors," viewed Khan of JS Global, who expects Thursday's positive momentum to continue Friday. At ready-counter, trading turnover was recorded lowering to 223 million shares from Wednesday's 279 million. The traded value contracted to Rs 10.85 billion compared to Rs 12.43 billion a day earlier.
Of the total 378 scrips traded, 258 settled in green, 102 in red while 18 stayed unchanged. The market capitalisation grew by Rs 90 billion to accumulate to Rs 7.351 trillion. Pace Pakistan was the day's volume leader with 15.8 million turnover. The issue rose to Rs 7.23 from its opening price of Rs 6.80. Jahangir Siddiqui Company 13.7 million, K-Electric 13.1 million, Dewan Cement 11.9 million, Bank of Punjab 11.6 million, SSGC 11.2 million, Adamjee Insurance 8.8 million, Pak Elektron 7.8 million, Byco Petroleum 7.8 million and Askari Bank 7.1 million shares. MLCF, CHCC and DGKC gained the most, 5, 3.7 and 2.3 percent, as the cement sector lured local investors on the back of what analysts said Asian Development Bank's announcement of new projects. All the scrips from auto sector showed positivity to end the day in green. Futures trade surged to 69 million contracts from the previous 66 million.
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