PSX rises after 11 consecutive falls
KARACHI: Pakistan Stock Exchange (PSX) closed in the green on Tuesday after 11 consecutive falls, the longest losing streak since the global financial crisis of 2008.
It was also the first time the PSX recorded gains since its inception. Stocks rebounded after crude oil prices rose in international markets. Prices increased as figures demonstrated strong demand from World’s second largest economy, China. Stocks also drew support after formation of a joint task force of the Federal Investigation Agency (FIA) and the Securities and Exchange Commission of Pakistan (SECP) on instruction of Interior and Narcotics Control Minister Chaudhry Nisar Ali Khan. The joint task force will talk over matters prior to the initiation of any action by the FIA pertaining to the capital market of Pakistan.
Investors heaved a sigh of relief as the KSE-100 index jumped 464.21 points and ended at 31,092.61. Lush green KMI 30 bounced 920.03 points to 53,146.94. KSE All Share appreciated 331.67 points to settle at 21,735.14. Advancers to decliners ratio stood at 253 to 50 with 30 companies banging the upper lock.
The market volumes dried up to 154.127 million from Monday’s 210.253 million and the total value traded depreciated 21.56% to Rs 8.271 billion.
TRG Pakistan Limited (TRG +4.98%) led the technology and communications sector on
top of the volume chart. Systems Limited (SYS +5.00%) managed to reach the upper cap while NetSol Technologies Limited (NETSOL)
was up 3.75%.
Cement sector was next with Maple Leaf Cement Factory (MLCF +3.50%) in lead. Optimistic investors picked up MLCF ahead of the board meeting scheduled for Wednesday. The board meets to finalise results for half-year ended December 31, 2015.
The sector witnessed 18 gainers out of the total 22 scripts despite concerns over a
possibility of Iranian cement entering the local market now that sanctions have been lifted. Bestway Cement Limited (BWCL) edged up 4.68% and Attock Cement Limited (ACPL) increased 3.40%.
The oil and gas marketing sector was third on the volume chart. Sui Northern Gas Pipeline Company (SNGP +5.00%) managed to reach the cap price after announcement of the long awaited financial results for the year ended June 30, 2014.
The company posted a loss per share of Rs 6.25 against previous years Rs 15.37. Hascol Petroleum Limited (HASCOL +5.00%) and Sui Southern Gas Company Limited (SSGC +5.02%) also bagged handsome returns.
Oil and exploration stocks rallied after several dips. Pakistan Petroleum Limited (PPL +5.00%) closed at the cap price after a decline of 7.12% in a week. Similarly, Mari Petroleum Limited (MARI) was up 3.86% reversing some of the 14.84% lost in one week. Oil and Gas Development Company (OGDC) following dip of 6.72% in a week increased 3.61% while Pakistan Oilfields Limited (POL) appreciated 3.59%. POL depreciated 17.36% in a week’s time.
According to data released by the National Clearing Company of Pakistan Limited (NCCPL), foreigners were net sellers of $10.196 million. In contrast, local investor’s cherry picked commercial banks and oil and gas exploration sectors to take advantage of the discounted prices.