PSX breaks losing streak on hopes of finding offshore reserves
KSE-100 index rises 1.2% to settle at 34,291.65
Putting an end to its losing streak, the Pakistan Stock Exchange (PSX) ended Wednesday’s with decent gains. Foreign investors, on the other hand, ended as net sellers in the preceding session (Tuesday) with a net outflow of $2.17 million.
Bulls staged a comeback at the bourse as the KSE-100 index surged over 550 points in intra-day trading and closed with a handsome gain of 407 points mainly due to completion of offshore drilling near Karachi. Apart from that, the approval of a new tax amnesty scheme also bolstered investor sentiments.
Aba Ali Habib Securities, in its report, stated that exploration and production stocks outperformed given the rise in crude oil prices in the global market following armed drone attacks on two oil pumping stations in Saudi Arabia coupled with OPEC’s demand for further production cuts in order to keep supply tight and price elevated.
Furthermore, market sentiments were bolstered by high expectations of finding hydrocarbon reserves in the Kekra-I offshore well as drilling was nearing its end and an official announcement of the estimated reserves. As a result, Pakistan Petroleum and Pakistan Oilfields touched their upper price caps while Oil and Gas Development Company and Mari Petroleum rose Rs3.17 and Rs35.53 respectively.
Apart from this, the automobile and pharmaceutical sectors also exhibited modest performance and closed in the green. Earlier, the benchmark KSE-100 index shot up as soon as trading began without any downtick