KARACHI: Stocks extended the rally on Friday as the KSE-100 index added 172.44 points (0.57 per cent) to close at 30,376.53.
Momentum was built by oil marketing companies (OMCs) where APL and PSO closed up 4.4pc and 1.6pc, respectively, as the government decided to increase OMCs margins in the ECC meeting on Thursday.
The auto sector continued to remain in limelight on account of expected favourable developments in the upcoming auto policy; PSMC and HCAR hit their ‘upper circuits’.
On Friday, the volumes remained relatively low because of Muharram holidays in the first two days of the coming week.
After four successive sessions of selling, the foreign investors turned net buyers on the last day of the week with the net inflow on Friday at $1.97 million. While most institutional and individual investors stayed on the sidelines, equity mutual funds entered into buying $1.26m worth stocks as they could no longer remain liquid.
Analyst Ahsan Mehanti commented that the rally on Friday was led by oil, fertiliser and auto stocks on strong valuations.
“ECC approval on upward revision in OMCs margins, expected approvals on new auto industrial development policy; Privatisation Commission’s (PC) announcements on OGDCL share sale book building next week and recovery in global stocks played a catalyst role in bullish close at the market,” analyst said.
Over the week, the KSE-100 index gained 279 points or 0.92pc, albeit on relatively low volumes. Average daily volume and value traded rose 4.4pc and 28.4pc WoW, respectively, to 173m shares and $98m per day.
The key news flow moving the markets included the meeting of PC to finalise the floor price of OGDCL shares, while the strike price would be decided on Nov 7.
Published in Dawn, November 1st, 2014
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