KARACHI, May 20: Heavy foreign buying sent the stock market scurrying upon Monday with the KSE-100 index making a gain of 277.11 points or 1.36 per cent to close at 20,814.14 points. The value of KSE crossed Rs5 trillion.

The noticeable feature of trading on Monday was the huge inflow of foreign portfolio investment in the sum of $11.93 million. As foreigners are prone to invest in big cap stocks, much of their activity remained centered on the heavy-weight ‘oil and gas’ sector.

OGDC with a weightage of 12 per cent per rupee in the index, hit the ‘upper lock’ with a gain of Rs10.50 or 5 per cent; Pakistan State Oil the foreigners’ current favourite also hit the ceiling with gain of Rs12.21 and Pakistan Petroleum Limited made decent gains of Rs2.50.

In terms of index gains, OGDC contributed 120 points; PSO 35 points and PPL 15 points, all of which meant that in the overall gain of 277 points, the contribution by just the three stocks was 170 points, with the remaining around 100 points increase contributed by other stocks, mainly in the cement sector.

Sales team at brokerage Sherman Securities commented that the foreign buying apparently in OGDC, PPL and PSO triggered positive sentiments on one hand, while on the other, small priced stocks mainly in cement showed handsome volumes on Monday.

LotChem was up on expectations that National Tariff Commission may approve the increase in custom duty.

Equity sales at Arif Habib Limited pointed out that the index had closed at an all-time high of 20,814 points with high turnover. The share price rise was primarily triggered by the expected improvement in governance due to change in regime.

Expectations were driving the market, while the market was discounting any adverse development. The successful transition of power would push the issue of next budget in the limelight and the market would take the cue from developments on budget issue.

Ahsan Mehanti observed that speculations for early resolution of circular debt crises as economic priority of new government, rising local cement and urea prices and foreign interest in oil and energy stocks played a catalyst role in bullish post election rally at KSE despite concerns for rising current account deficit and rupee instability ahead of IMF repayments due.

The figures released by the National Clearing Company of Pakistan showed all local participants on the ‘sell’ side on Monday, with the major selling of $8.45m worth stocks by ‘individuals’. Banks also booked profit with sale of $3.68m stocks; Companies offloaded $0.41m shares and mutual funds $0.11m worth stocks.

The gaining stocks at 224 were far ahead of the losers at 149 in 394 total stocks that came up for trading on Monday.

Turnover in terms of shares declined 6 per cent to 344 million shares on Monday, from 372m shares the previous Friday.

Trading value rose by 20 per cent to Rs10.9 billion, from Rs9.1bn as high-valued stocks attracted foreigners’ interest.

Market capitalisation increased by Rs83bn to Rs5.072 trillion on Monday, from Rs4.989tr the previous Friday.

Among the top ten active stocks, Lafarge Cement Pakistan rose by 89 paisa to Rs7.97 on 38m shares; Maple Leaf Cement gained 75 paisa to Rs21.10 on 25m shares and Fauji Cement was up by 33 paisa to Rs11.06 on 21m shares.

Dewan Cement added 35 paisa to Rs6.41 on 12m shares, Byco Petroleum was higher by47 paisa to Rs11.22 on 10m shares and Nishat Mills gained Rs1.55 to Rs94.96 on 9m shares.