Pakistan stocks erase early gains as oil slides down
KARACHI: Pakistan stocks recorded handsome gains during the day and breached the 33,000 mark for the second consecutive day.
KSE-100 index rose 189.90 points to touch 33,043.34 but scrapped all gains and ended the session at 32,791.71 (-61.83pts). KMI 30 closed 248.04 points down at 54,700.26 while KSE All share shrunk 58.75 points to reach 22,853.51.
The market volumes improved 24% with 192.64 million shares traded on Tuesday. Low and mid cap companies continued to remain centre of attraction. K-Electric Limited (KEL +3.14%) secured the volume leader rank with volume of 21.08 million. The company helped power generation and distribution sector become the highest traded sector with volume of 26.33 million.
Pakistan Elektron Limited (PAEL|+4.33%), 14.94million, led the cable and electrical goods sector to secure the second spot with a volumes of 18.84 million. PAEL touched the upper cap during the day after the company issued a notice informing investors about upgradation in ratings by Pacra. It now has a long-term rating of ‘A’ and short-term rating of ‘A2’.
As international oil prices touched 6-year low, the oil stocks in Pakistan responded with a downward trajectory. Oil heavy weight Oil and Gas Development Authority (OGDC -1.05%) is now trading at February 2010 levels. Closing of other oil companies was as follows; Pakistan Oilfields Limited (POL -1.08%), Attock Petroleum Limited (APL -2.26) and Hascol Petroleum Limited (HASCOL -0.55%). Mari Petroleum Limited (MARI +5.00%), at an upper lock, was the only major gainer in the sector.
The Economic Coordination Committee (ECC) approved 500,000 tonnes of sugar export with a subsidiary of Rs 13/kg. The committee also decided to deregulate sugarcane pricing from next year. No major impact of the news was seen in the stock prices. Out of the 35 scripts in the sector, only eight edged up.
Foreigners ended as net sellers for another day, laying off stocks worth $3.03 million. Profit taking was witnessed in the fertiliser sector where they sold $2.79 million. Local mutual funds were net buyers of $2.22 million on Tuesday.