Active buying in oil shares boosts market sentiment
By our correspondent (KSE Report)
22 May 2008
KARACHI — Pakistani stocks yesterday came in for active short-covering on the oil sector aided partly by rising world prices to a record $129 plus level and partly to technical support in an oversold market.
Official word on a positive national budget due possibly on June 7, ensuring relief to the common and tax relief for the trade and industry was another supporting factor behind the technical rally, analysts said.
The market's return to sanity was also well-reflected in the performance of the KSE 100-share index, which after having briefly crossed the barrier of 14,000 at 14,012, failed to sustain it on late selling.
It finally ended with a recovery of 71.37 points at 13,974.49 but on the other hand its junior partner extended the overnight gain by another 166.00 points at 16,583.58.
Pakistan Petroleum, OGDC, Attock Refinery, PSO Shell Pakistan and some of the leading bank shares notably MCB remained in strong demand and pushed the index well above the current lows.
Unlike previous sessions, the performance of the broader market was credibly well and reflected the return of the bulls after some of the most immediate political depressants are fading out after the reports of constitutional package, analysts said.
And it could lead to smooth functioning of the stable coalitions both in the centre and the provinces after the passage of the package in the assembly.
Floor brokers said the current recovery process is expected to be continued in the coming sessions also as the current lower levels reached by most of the leading shares are expected to attract fresh buying both for quick capital gains and long-term investment.
Trading volume rose further to 176 million shares from the previous 168 million shares as gainers held a comfortable lead over the losers at 185 to 117, wuth 33 shares holding on to the last levels.
The most active list was topped by Pakistan Petroleum, sharply higher by Rs9.51 at Rs270.50 on 14 million shares followed by OGDC, higher by Rs3.25 at Rs132.25 on 12 million shares, Arif Habib Securities, off Rs1.50 at Rs185.00 on 10 million shares, Bank Al Falah, lower 40 paisa at Rs53.80 on 7 million shares, Attock Refinery, higher by Rs6.00 at Rs260.00 on 6 million m shares, Nishat Mills, up 82 paisa at Rs108.62 on 5 million shares and Engro Chemical, off Rs3.35 at Rs310.95 on 6 million shares.
