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Stocks add 202 points after hydrocarbon discovery

KARACHI: Bulls dominated the stock market on Tuesday pushing the KSE-100 index up by 201.63 points (0.5 per cent). The intraday movement was relatively restricted as investors await economic clarity on budgetary front. The index closed at 39,615 after hitting an intraday high of 299 points.

Positive investor sentiment was driven by anticipation of hydrocarbon discovery in the Indus offshore operated by a joint venture between ENI, ExxonMobil, Oil and Gas Development Company (OGDC) and Pakistan Petroleum Ltd (PPL). Moreover, fertilisers also contributed since the sector has attracted attention in the run up to mini-budget as investors anticipate gains in the sector from resolution of Gas Infrastru­cture Develo­pment Cess.

According to figures released by the National Clearing Company of Pakistan, foreigners were net sellers decreasing their positions by $0.85 million. Amongst local investors, individuals, brokers and insurance companies emerged as net buyers raking up $2.8m whereas banks and funds offloaded their positions by $2.12m.

The volume increased 5pc to 121.5m shares with total traded value jumping by 26pc to $49.7m. Stocks that contributed significantly included Pak Elektron, Bank of Punjab, Lotte Chemical, K-Electric and Dawood Hercules, accounting for nearly 43pc of the total turnover during the day.

Sector-wise, exploration and production contributed 158 points, fertiliser 98 points and banks 26 points to the intraday gain whereas chemical, pharmaceutical and cement sectors took away 67 points.

Major contribution to the index upside came from Pakistan Petroleum which hit the upper lock at 5pc, Oil and Gas Development Company 3pc, Engro Corporation 2.9pc, Pak Elektron 0.8pc and Fauji Fertiliser 1.8pc. On the other hand, Millat Tractors was down 1.7pc, ICI Pakistan 4.2pc and Murree Brewery 1.7pc.

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