Stocks up on renewed interest in oils

May 07:

Stocks on Wednesday recovered some of the losses as a surge in global oil prices by more than a dollar whetted buying appetite for oil shares, analysts said.

Analyst Samar Iqbal at Topline Securities said rally in oil stocks, following rising international oil prices, helped the bourse post gains with growing volumes.

The Karachi Stock Exchange (KSE) 100-share Index improved 305.64 points, or 0.91 percent, to close at 33,839.28 points.

KSE-30 shares index rose 233.56 points, or 1.08 percent, to end at 21,786.69 points.

As many as 362 scrips were active; of which 191 advanced, 152 declined and 19 remained unchanged.

The ready market volumes stood at 214.624 million shares as compared to 172.649 million shares in the last trading session.

Analysts said dealers are awaiting the latest report on US crude stockpiles for clues about the world’s state of production.

Oil and Gas Development Company and Pakistan Oilfields rallied five percent, while Pakistan Petroleum Limited was up three percent.

These shares contributed 193 points to the total index gain of 306 points.

Analyst Ahsan Mehanti at Arif Habib Commodities said stocks closed higher amid bullish rally in oil scrips after Brent crude prices hit 2015-high of near $68/barrel.

“However, Standard & Poor’s revision of credit ratings outlook to positive and its forecast of higher GDP growth catalysed bullish sentiments,” Mehanti said. “Concerns over growing power sector’s receivables and political uncertainty dampened the sentiments.”

Analysts said oil prices extended gains in Asia as tensions in oil producer Libya stoked fears of supply disruption in the Middle East.

In recent weeks, oil prices have also garnered some support due to ongoing strife in Yemen, whose coast forms one side of the Bab-el-Mandeb Strait through which some 4.7 million barrels of oil pass each day.

Institutional interest helped Pakistan Telecom to rise five percent with a turnover of 9.5 million shares.

Investors, expecting robust growth in car sales for April, took interest in auto sector. Pak Suzuki and Honda both closed above one percent.

Highest volumes were witnessed in Pak Elektron with a turnover of 23.578 million shares.

The scrip edged up Rs1.84 to close at Rs63.13. It was followed by Byco Petroleum with a turnover of 15.214 million shares. It inched up 79 paisas to end at Rs12.42/share.

K-Electric was the third with a turnover of 13.959 million shares. It inched down one paisa to finish at Rs7.76/share.

Source: http://www.thenews.com.pk/Todays-News-3-316729-Stocks-up-on-renewed-interest-in-oils?