KARACHI: Bulls were in complete command at the stock market on Friday where the KSE-100 index gained 215.65 points to close at 34,719.29.

Trading volume decreased to 254.7 million shares on Friday from 270m shares a day earlier and trading values declined to Rs13.3bn from Rs14.5bn. Retail favourites dominated the volumes chart. Foreign outflows halted on Friday with foreign funds cherry picking stocks worth $1.35m.

Sharp recovery in global oil prices and ‘better than expected quarterly’ results fuelled the bull run at the market. Investors shrugged off the fears of unsettled political situation as the market geared for reclassification to the MSCI emerging market status.

“Positivity in today’s session can be attributed to a rally in banking sector, as the sector continued its upward trajectory on the back of better than expected 1Q16 results,” stated analysts at JS Global.

OGDC gained 0.98pc, POL 1.23pc and PPL 0.34pc as the crude oil prices traded above $46 a barrel. PSO came under selling pressure down 1.79pc after the oil marketing company declared a loss.

Dealers at Global Securities concurred that the biggest contributors towards the rally were commercial banks with HBL rose 5pc, MCB Bank 4.85pc and UBL 2.26pc. Those three stocks grabbed investors’ attention over a possible inclusion in the MSCI EM index.

FFC and FFBL rose 1.46pc and 4.43pc, respectively, contributed 34 points towards the KSE-100 index as those stock would likely be the biggest beneficiary of cheaper gas after OGRA announced a reversal in feed gas prices to Sept 15 levels.

Ahsan Mehanti at Arif Habib Corp said the Pakistan Development update issued by World Bank affirmed economic stability and progress inviting fresh institutional interest in banking stocks.

Published in Dawn, April 30th, 2016