OMCs lead 172-point rally after ECC’s move

Published November 1, 2014
— File photo by Reuters
— File photo by Reuters

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

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Afghan turbulence
Updated 19 Mar, 2024

Afghan turbulence

RELATIONS between the newly formed government and Afghanistan’s de facto Taliban rulers have begun on an...
In disarray
19 Mar, 2024

In disarray

IT is clear that there is some bad blood within the PTI’s ranks. Ever since the PTI lost a key battle over ...
Festering wound
19 Mar, 2024

Festering wound

PROTESTS unfolded once more in Gwadar, this time against the alleged enforced disappearances of two young men, who...
Defining extremism
Updated 18 Mar, 2024

Defining extremism

Redefining extremism may well be the first step to clamping down on advocacy for Palestine.
Climate in focus
18 Mar, 2024

Climate in focus

IN a welcome order by the Supreme Court, the new government has been tasked with providing a report on actions taken...
Growing rabies concern
18 Mar, 2024

Growing rabies concern

DOG-BITE is an old problem in Pakistan. Amid a surfeit of public health challenges, rabies now seems poised to ...