PSX regains some losses on strong oil stocks

Pakistan stocks on Tuesday gained 1.52 percent, snapping 11 days of losses, as investors returned to buy at energy and other blue-chip counters following an upturn in global bourses, dealers said.

“Oil stocks led the rally at PSX after crude oil slightly recovered at the world markets,” said Farhan Mansoori at Arif Habib Limited.

Mansoori said many world stock markets followed the recovery path in crude oil, which slightly regained above $29/barrel from its 12-year low.

 “Crude oil may stabilise at current level with world leaders expediting mediation efforts to ease Saudi Arabia and Iran tension,” he added.

The Pakistan Stock Exchange’s (PSX) benchmark 100-share Index regained 464.21 points, or 1.52 percent, to close at 31,092.61 points.

KSE 30-share index recovered 273.79 points, or 1.54 percent, to 18,098.23 points.

Volumes dropped 56 percent to 154.12 million shares. Trading value decreased 22 percent to Rs8.27 billion. The market capitalisation rose Rs100 billion to Rs6.59 trillion. Of a total of 335 active stocks, 261 closed up, 51 ended down, and 23 finished with no change.

The financial result season may also divert investors’ attention from the international economic developments. China reported 25-year low growth numbers in industrial sector, which did not impact global bourses.

Ovais Ahsan at JS Global Research said heavyweight oil and gas sectors contributed significantly to the market recovery. The stocks included Oil and Gas Development Company (up 3.38 percent), Pakistan Oilfields Limited (rising 2.35 percent) and Pakistan Petroleum Limited (increasing five percent). Sui Northern Gas Pipelines Limited closed on its upper circuit of five percent as the gas utility company posted comparatively better results for the financial year of 2014. The company’s losses came down thanks to gas development surcharge.

IBL Health Care also ended on its upper circuit as Searle Pakistan said its board of directors decided to make an investment in its subsidiary to raise its stakes to 75 percent. Faisal Bilwani at Elixir Securities said institutional investors were the major buyer at the undervalued market.

Cements, on the other hand, generated volumes, but closed mixed, while financials also failed to provide any serious upside on renewed concerns of a possible rate cut, Bilwani said.

Retail investors also heaved a sigh of relief as small and mid caps rebounded with healthy volumes, while foreigners were reported sellers in index names, he added.

TRG Pakistan was volume leader with 11.94 million shares, as it closed at Rs27.49 with an increase of Rs1.19.

This was followed by Jahangir Siddiqui & Company with 7.78 million shares, which ended at Rs17.31 with a gain of 57 paisas. Pace (Pak) recorded trade in 7.58 million shares, as it finished at Rs5.99 with a rise of 16 paisas.