KARACHI: The sustained rally in the stock market enthused investors to a buying spree that saw the KSE-100 index make another hefty gain of 394.92 points on Thursday to close at 32,478.98.

During the past 10 days of positive close, the index made cumulative gains of 1,727 points.

On the last trading day of the week, stocks took inspiration from regional and European markets.

The market opened on a positive note and was able to sustain its momentum on the back of expectations of recovery in global oil prices “as rumours about a potential deal between Russia and Opec to cut crude output surfaced”, said dealers at Global Securities.

Consequently, prices of oil scrips flared up — OGDC (2.81pc), PPL (3.01pc) and POL (4.76pc).

In banking sector, the recent slump in HBL (up 1.80pc) enthused bargain hunters to take advantage of the attractive valuation.

Foreign investors sold stocks worth $1.04m.

Head of equity sales at Foundation Securities, Zubair Ghulam Hussain, explained that the redemption pressures at some of the global assets managers are forcing them to liquidate their positions, though Pakistan has experienced much lesser outflow in comparison to other regional markets.

He reckons that going forward, depreciation of the rupee could be a stumbling block.

Executive director at Next Capital, Zulqarnain Khan, said that the investors were attracted due to healthy dividend yields and on expectations of foreign buying as half a dozen local brokerage houses, who cater to major foreign institutional investors, were already receiving basket orders ahead of the possible inclusion of Pakistan among emerging markets later this year.

Published in Dawn, February 5th, 2016