Pakistani stocks rise on fresh foreign inflows

KARACHI, Jan 15 (Reuters) Pakistani stocks rose in early Monday trade on fresh inflow of foreign funds, as well as increasing investor interest in the energy sector after international oil prices staged a recovery, dealers said.

The benchmark Karachi Stock Exchange (KSE) 100-share index <.kse>, rose 0.60 percent, or 62.96 points, to 10,489.63 on a turnover of 27.5 million shares at 0515 GMT.

The free-float KSE-30 index <.kse30> gained 0.68 percent to 13,215.84 points.

''We have seen foreign interest in oil and banking stocks recently, and this is likely to keep the market positive,'' said Tanvir Abid, head of institutional sales at IGI-FINEX Securities.

According to central bank data, net foreign inflow into the capital market amounted to .24 million in the first 12 days of January.

''Its the first day of the week, and we will see new postions from retailers as well as institutions,'' said Shuja Rizvi, head of institutional sales at Capital One Equities.

''This is because the underlying market sentiment is pretty positive.'' The sentiment improved after the government granted a one-year extension in tax exemption on capital gains for stock investors last week.

It got a further boost when the provincial Sindh government also decided to defer stamp duty on electronic transfer of shares for two years later during the week.

Dealers said a recovery in world oil prices was also likely to raise investor interest in energy stocks.

Oil prices rose above on Monday, rebounding from last week's 19-month low, on speculation that OPEC could cut output again.

Amongst the heavyweights, Oil and Gas Development Co. Ltd.

rose 1.05 rupees to 117.40 rupees, National Bank of Pakistan shed 0.20 rupees to 260.30 rupees, while Pakistan Oil Fields rose 7.50 rupees to 349.40 rupees.

REUTERS PV BD1347