KARACHI: Stocks stormed high on Tuesday as the KSE-100 index roared past the 29,000 points level to touch 29,260.29, placing the day’s gains at 766.55 points or 2.69 per cent.

Investors were comforted as they sensed a thaw in the political crisis since the joint session of the parliament, though critical of the government, asserted commitment to democracy and to uphold the constitution.

“More importantly, the investors’ fears of military intervention were set at rest after the forces reaffirmed their apolitical stance and distanced itself from the current crisis,” said a senior broker.

Foreign portfolio inflows on Tuesday stood at $3.10 million with investors’ preference for stocks on oil and gas and chemicals sector.

Also read: Stocks fall as political strife continues

PPL, PSO, APL and OGDC appreciated by 1.95pc, 4.34pc, 2.27pc, and 2.50pc, respectively.

Stocks across the board rose with numerous hitting their ‘upper circuits’ in the oil and gas; cement; banking and chemical sectors.

In cements, Lucky gained maximum 5pc after the company results beat consensus analysts’ forecasts with company revealing earnings per share at Rs35.08, up 17pc YoY. Pioneer, Maple Leaf, Kohat also hit their ‘upper circuits’. Major giant of chemical sector Engro also gained maximum for the day.

Analyst Ahsan Mehanti at Arif Habib Corp stated that stocks closed bullish after parliamentarians reaffirmed their commitment to democracy and constitution in a joint session, raising hopes of an end to political crisis.

“Record earnings announcement by Lucky Cement, Low CPI for August 2014 at 6.99pc YoY, renewed foreign interest in oil and banking stocks and expected ease in circular debt on tariff rationalisation measures for release of $550m IMF tranche next month played a catalyst role in bullish activity,” said Mehanti.

Published in Dawn, September 3rd, 2014