The unified Pakistani bourse, Pakistan Stock Exchange (PSX), hit an all-time high on Monday by touching 47000 points. The bullish run leads the with the KSE-100 benchmark index to experience a surge of 2.3% or 1,197 point week-on-week with local institutions leading the table, and companies, mutual funds and banks cumulatively mustering shares worth $54 million.
International oil prices hits a 17 months high helping oil based stocks to experience a significant surge in a market that saw comparatively thin volume of 344 million shares. It is worth noting that international oil prices rose to $53.13/ bbl on expectations that oil supply would be reduced, with prices increase further in 2017. Also, it is recently reported that Goldman Sachs has already increased the benchmark West Texas Intermediate crude (WTI) price from $55/bbl to $57.50/bbl for the second quarter of 2017.
Faisal Bilwani, an analyst at Elixir Securities, said that there wasn’t any halt to the advance of equities as bulls drove the market and helped the KSE-100 benchmark index to end its 12th positive trading session in a row.
“Gains on the day were led by exploration and production and select index names across power, auto and financial sectors on reported institutional buying,” he said.
Moreover, Pakistan Petroleum Limited (PPL) experienced a hike of 2.1% and Pakistan Oilfields Limited (POL) saw a 2.9% increase in its share price due to a hike in crude prices over the weekend. In contrast, Oil and Gas Development Company (OGDC) experiences a decline of 0.5% after recording trading volumes of approximately 8 million shares.
“Hub Power (+1.3%) also maintained the positive streak on renewed interest as the company recently hinted at the possibility of securing the regulator’s approval for the planned 1,320-megawatt power plant,” said Bilwani