Oil and gas discovery in Sanghar, Sindh pushes KSE 100-share index 28 points higher

[Omar1984]

Oil and gas discovery in Sanghar pushes KSE 100-share index 28 points higher
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KARACHI: The Karachi stock market witnessed a firm trading session on the last trading day of the week Friday on support from increase in discoveries of oil and gas by the Oil and Gas Development Company Limited in Sanghar and rise in foreign exchange reserves to $14.75 billion.

The Karachi Stock Exchange (KSE) 100-share index gained 27.76 points or 0.28 percent to close at 9,768.63 points as compared to the previous session’s 9740.87 points. The KSE 30-share index closed at 10,381.25 points with a surge of 35.31 points. The KMI 30 index closed at 14,040.39 with a loss 22.91 points.

Analysts said the surge in global equity markets and expectations of early approval of leverage products were also the reasons that supported the market. The market opened on a positive note and until the end of the session the trend prevailed. Bank and cement sectors remained in the limelight during the session.

The market turnover went down by 24.29 percent and traded 239.66 million shares as compared with previous session’s 316.58 million shares. The overall market capitalisation was up by 0.24 percent to close at Rs 2.835 trillion as compared with Rs 2.828 trillion. Out of total 404 companies, 209 closed in the positive zone, 179 in negative and 16 remained unchanged.

Joining the rally was oil and gas exploration and marketing stocks, since the rally was reinitiated by the local investors, strength invited profit taking, as the investors have adopted a short term view ahead of 10,000 points, mainly on the likelihood that the foreign investors will come in later during the day, index heavy weight witnessed accumulation in early hours, he added.

Confusing statements by foreign participants regarding the momentum of the market has led to a jittery approach by the local investors. Repelling views by different foreign players in a span of 24 hours expecting a 10 percent decline while others expect extreme surge clearly indicating that the statements might not follow action, he said and added that cautious stance was therefore prominent, as it has been by the local investors, who are engaged in short-term trading.

“Oil prices crossed $71 per barrel on weak dollar,” said senior analyst at Shahzad Chamdia Sec Ahsan Mehanti. “Institutional and retail interest witnessed in banks, oil and cement sectors on expectations of strong result announcements next week for September quarter also supported the market.”

The KSE 100-share index opened in green zone with a gain of 50.31 points and at the end of the day closed at 9,768.63 points with a gain of 27.76 points. staff report

 

[ramiz1236]

any info about the volume of oil & gas discovered ??

 

[arihant]

I don't why Indian or Pakistani Media treat any news as a source for motivation for Share Market. Share market will either gain or loose and points like 28 is not much to prove that it was because of discover of oil.