KARACHI, Nov 19: Stocks on Monday staged a snap recovery on active short-covering in the leading oil shares triggered by reports of removal of $50 ceiling on oil pricing formula and dismissal of most of the petitions against the presidential election for the second term.
The KSE 100-share index recovered 157.86 points at 13,239.87 as compared to 13,082.01 points on the strength of leading oil and bank shares, notably OGDC, Pakistan Petroleum, Pakistan Oilfields, National Bank and Bank of Punjab, adding Rs45 billion to the market capital at Rs4,048bn.
Its junior partner the KSE 30-share index also rose by 188.89 points at 15,725.63 as against 15,536.74 at the last weekend.
“I don’t attribute the snap rally to the revival of foreign demand in the leading oil shares at the current lower levels,” said an analyst, adding “the trading in the next couple of sessions will show whether or not the support is genuine or inspired”.
However, removal of $50 per barrel pricing ceiling on the oil exploration companies owing to steep increase in international crude rates during the recent weeks to well over $90 was said to be the chief stimulating factor behind the rally in the oil sector, analyst Ahsan Mehanti said, adding “dismissal of petitions against the presidential election by the apex court was another supporting factor”.
Some others fear negative fallout of president’s refusal to lift emergency prior to the national elections as suggested by the US diplomat during his recent visit leading to aid-linked some financial problems.
“Investors should not read too much in the president’s current stance on the emergency,” they said, adding “it will be lifted on his own timings”.
But some independent observers say all is not well on the investment front notably in the share business irrespective of some positive developments in relation to continuity of the existing economic policies.
The short-covering was largely selective and was confined to some risk-free shares indicating that no one was inclined to go beyond the safe havens because of the tense situation on the political front and the absence of market trend-setters, they added.
Leading gainers were led by JS & Co and Nestle Pakistan, up by Rs21.30 and Rs25, followed by Sapphire Textiles, IGI Insurance, Javed Omer, Arif Habib Ltd, Gillette Pakistan, Pakistan Petroleum Shell Pakistan, PSO, Dawood Hercules and Pakistan Oilfields, which posted gains ranging from Rs5 to Rs15.65.
Prominent losers were led by Unilever Pakistan and Siemen’s Pakistan, off by Rs25 and Rs95. Other major losers included Adamjee Insurance, Pak-Suzuki, Mirpurkhas Sugar, HinoPak Motors, Netsol, Sanofi-Aventis, Pakistan Engineering and EFU Life, off by Rs6 to Rs19.
The fact that losers maintained a fair lead over the gainers indicated the support largely originated from selected counters having the holding capacity for a longer period.
Trading volume showed a modest rise at 177m shares as compared to 139m shares at the weekend session but losers maintained a modest lead over the gainers at 170 to 149, with 35 shares holding on to the last levels.
OGDC topped the list of actives, higher by Rs4.40 at Rs119.25 on 22m shares, followed by TRG Pakistan, steady by 50 paisa at Rs12.90 on 16m shares, Arif Habib Securities, up by Rs4.45 at Rs157.35 on 11m shares and Attock Refinery, higher by Rs5.10 at Rs245 on 10m shares.
Pakistan Petroleum followed them, sharply higher by Rs9.85 at Rs244.35 on 8m shares, Pakistan Oilfields, higher by Rs15.65 also on 8m shares and National Bank, up by Rs3.15 at Rs232.80 on 4m shares.
Other actives were led by Bank of Punjab, higher by Rs1.75 on 8m shares followed by Javed Omer, up by Rs7.30 on 7m shares and Fauji Fertiliser Bin Qasim, firm by Rs1.35 also on 7m shares.
FORWARD COUNTER: MCB led the list of actives on the cleared list, off Rs4.35 at Rs337.65 on 7m shares followed by Pakistan Petroleum, higher by Rs9.50 at Rs245.50 on 6m shares and National Bank, up by Rs1.55 on 5m shares.
OGDC followed them, higher by Rs4.15 at Rs119.50 on 5m shares and Pakistan Oilfields, sharply higher by Rs15.75 also on 5m shares.
DEFAULTER COMPANIES: Zeal Pak Cement led the list of actives on this counter, lower by five paisa at Rs4.65 on 1.203m shares followed by Japan Power, up by 20 paisa at Rs8.30 on 0.490m shares and Unity Modaraba, unchanged at Re1 on 0.461m shares.
Other actives were led by Interasia Leasing, lower 10 paisa at Rs1.15 on 0.194m shares, Norrie Textiles, unchanged at Rs1.70 on 0.144m shares and Amazai Textiles, up by 40 paisa at Rs1.35 on 0.106m shares.
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