Bullish KSE100-Index Closes At 9085 Points
By Admin - Thu Sep 10, 6:20 am
KARACHI: Pakistani stocks gained nearly 3 percent on Wednesday to end at their highest close of the year led by the energy sector as global oil prices rallied, dealers said.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index .KSE closed or 263.42, or 2.99 percent, higher at 9,084.38 on turnover of 219.8 million shares.
During the session, the KSE-index made a new intra-day high for this year at 9,121.79 points.
The index has gained 54.9 percent this year after losing 58.3 percent in 2008.
“On the back of foreign inflows, we have once again witnessed a good rally led by oil stocks as international oil prices are rising,” said Sajid Bhanji, a dealer at brokers Arif Habib Ltd.
Dealers said foreign investors had been looking at Pakistan because its macroeconomic fundamentals were improving but there was some selling from local institutions.
According to official data, foreign investors bought shares worth $95.3 million in August and $73.95 million in September.
Last month, S&P raised Pakistan’s sovereign rating to B-minus from CCC+, citing improvements in its external liquidity and a reduction in its fiscal deficit.
Among blue-chips, Oil and Gas Development Co. Ltd. rose 1 percent to 113.10 rupees, National Bank of Pakistan, gained 2.91 percent to 77.42, and Pakistan Petroleum Ltd, ended 4.78 percent higher at 231.00 rupees.
The energy sector was in the limelight as global oil prices rallied above $71.50 a barrel, extending the previous session’s dollar-driven 4.5 percent rally as investors waited for an OPEC meeting to conclude and fresh U.S. inventory data.
In the currency market, the rupee ended weaker at 82.90/94 to the dollar compared with Tuesday’s close of 82.85/95. Dealers said the rupee was expected to face downward pressure because of import payments.
The rupee has lost 4.58 percent this year after losing 22.12 percent in 2008.