KARACHI: Extending the strong rally, not seen for months, the stocks at the Pakistan Stock Exchange (PSX) got off to a storming start on Thursday. The KSE-100 index shot through the roof with a gain of 623.91 points (1.77 per cent) to settle at 35,941.47 points, only a stone’s throw from the 36,000 level.

The benchmark index has gained 1,373 points (3.8pc) in the last three trading sessions and is 287 points shy of its all-time high of 36,228.

Traders, brokers and investors continued to ride the wave of enthusiasm created by the Pakistan’s possible entry into the MSCI Emerging Market status. Rumours circulated to the effect that foreign fund managers were issuing positive views to the MSCI on queries regarding Pakistan’s qualification to be reclassified among the EM.

At mid-day, buying frenzy intensified when MSCI disclosed that it would announce the decision on June 14. OGDCL gained 4.95pc, UBL 1.28pc, MCB 3.06pc, HBL 4.28pc and Lucky Cement 5pc were the main movers being the the candidates for inclusion in the MSCI EM Index if the reclassification takes place.

Volumes fell 10pc to 251m shares and value decreased 9pc to Rs15.7bn. Small cap stocks were again in the limelight. For the third successive day foreigners were net buyers; the inflow amounted to $4.39m. Mutual funds also picked up stock while individuals continued to book profit.

The rally was led by oil exploration and banking stocks on the back of 3pc rise in the crude oil prices. OGDCL and MARI closed at their upper circuit while POL was up 4.16pc.

“From sector perspective energy players were in the limelight along with fertilisers, cements, banks, multi-utilities and pharmaceuticals,” noted analysts at Interimarket Securities.

Published in Dawn, May 6th, 2016