KARACHI: After retreating for five straight sessions, the bulls were back with a vengeance on Thursday where the KSE-100 index made massive gains of 371.61 points (0.76 per cent) to close at 49,013.82.

The intensity of buying saw as many as 52 stocks close up 5pc — at their ‘upper circuits’. The most obvious cause for the investors’ enthusiasm seemed to be the ample liquidity, which also enabled the local participants to absorb persistent foreign selling.

Some perceived the sudden burst of activity to ‘irrational exuberance’. Yet, they said, the market could be undergoing re-rating ahead of the entry into the MSCI Emerging Markets later this year.

Autos were in the limelight with MTL, GHNI, PSMC and GHNL hitting their upper circuits. Steel sector gave a stunning performance with ASTL, INIL, ISL and ASL, all climbing up to hit their ‘upper cap’.

Investors in steel went on a buying spree after the National Tariff Commission reinstated anti-dumping duty on the import of cold rolled coil from China and Ukraine ranging from 13pc to 19pc for a period of five years.

Cements came back with a bang as DGKC up 1.27pc, LUCK 1.26, CHCC 5, and KOHC 1.24pc rallied. Analysts at Intermarket Securities added that support to the upside also came from NML 5pc, BAHL 2.89pc, MTL 5pc, Engro 1.18pc and ABOT 5pc.

On the flip side, OGDC fell 2.77pc and SEARL 1.20pc.

Dealers at Topline Securities stated that the KSE-100 index gained on the back of investors interest in Lucky Cement and news pertaining to import duty on cotton yarn that positively affected textile sector. Nishat Mills, Nishat Chunian and Kohinoor Textile gained between 1.8pc-5pc.

Published in Dawn, January 20th, 2017