KARACHI: Stocks rallied on Monday to break free from the previous sessions of declining trend. The benchmark KSE-100 index gained 631 points, or 1.24 per cent, to close above the 51,000 level.
The market received support from heavy net buying by mutual funds of the stocks worth $10.72 million on Monday.
Analyst Adnan Sami Sheikh at Topline Securities said the stocks witnessed widespread buying as the previous week’s correction reopened valuations. Global markets were buoyed by US President Donald Trump’s visit to Saudi Arabia, with Asian equities gaining while European and US futures also pointing in the same direction.
Besides, West Texas Intermediate crude oil gained nearly a dollar since Friday as the Organisation of the Petroleum Exporting Countries said all producers have agreed to extend cuts.
Activity thinned, but was skewed to blue chips; volume fell 30pc over the last session to 240m shares while trading value remained flat at Rs12.6bn on Monday.
Major gainers included Habib Bank which gained 3pc, United Bank 3.9pc, Engro Corporation 3.6pc, Oil and Gas Development Company 3.3pc and Pakistan Oilfields 4.2pc; they contributed 402 points to the index in aggregate.
In contrast, Sui Northern Gas Pipelines Ltd fell 1.7pc, Habib Metropolitan Bank 2.1pc, TRG Pakistan 1.2pc, International Steels Ltd 0.8pc and Jubilee Life Insurance 2pc, collectively taking 36 points off the index.
On the sector basis, banks, which received heavy battering in the previous two sessions, added 222 points on Monday. The exploration and production sector gained 156 points and fertilisers contributed 87 points. In the cement sector, Lucky Cement rose 0.53pc and DG Khan Cement 1.72pc after witnessing profit-booking on the previous trading day.
Published in Dawn, May 23rd, 2017
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