KARACHI: The stock market extended its rally on Thursday, with the benchmark KSE-100 index adding 210.11 points to close at 49,665.97.

The index started the day on a strong note as it made intraday gains of 478 points, but then succumbed to selling pressure in the second half and turned slightly red. However, with renewed interest from value investors, the index climbed back into the black. But despite the volatility, 43 stocks closed on their upper limits in contrast to 17 closing at their lower circuits on Thursday.

Analysts at some brokerage houses believed that the market remained volatile as investors remained concerned over possible outcome of a Securities and Exchange Commission of Pakistan’s ruling against margin financing. Ahsan Mehanti at Arif Habib Corporation said the increase in National Savings Schemes profit rates invited mid-session pressure in banking stocks.

From the sector perspective, telecommunication rose 2.34pc, energy 1.75pc and consumer discretionary 1.03pc contributed the most towards intraday gains, analysts at Intermarket Secur­ities said. Major contribution to the upside came from Pakistan State Oil which increased 5pc, Hub Power Company 1.26pc, Pakistan Petroleum Ltd 1.42pc, Mari Petroleum 4.05pc and Inter­national Steels Ltd (ISL) 4.99pc, adding 150 points to the index in aggregate.

Dealer Abra Juma on the Global Securities sales desk calculated that the exploration and production sector contributed 79 points to the surge in index on account of Pakistan’s oil production reaching two-year high.

OGDC’s share edged up 1.11pc on the back of the news that the government intends to wait for further divestment of its 5pc stake in the company until its share price touches Rs200.

Mari Petroleum announ­ced that the government had formally initiated the procedure for selling its 18.39pc shares, which led the stock to close at its upper limit of 5pc.

International Steels and International Industries continued to remain attractive for investors, and closed at its upper limit of 5pc after the ISL announced a day earlier that it was planning to raise its production capacity.

Published in Dawn, February 3rd, 2017