KARACHI: The third consecutive session of a bull run propelled the KSE-100 index by 322.56 points or 0.66 per cent to close at 49,020 points on Tuesday.

The index managed to cross the 49,000-point level after seven sessions and stopped slightly short of the intraday high of 49,060.

A market participant said risk takers and bargain hunters had entered to accumulate stocks in an over-sold market. Volumes rose 67.9pc to 225 million shares. A major chunk came from K-Electric, which contributed 36.06m shares, representing 16pc of the aggregate turnover.

Traded value surged 86.7pc to Rs11.2 billion. As many as 48 stocks closed on their upper circuits while eight closed on their lower limits.

Dealers at Topline Securities stated that the contribution to the upside came from MCB Bank 2.3pc, The Searle Company 4.7pc, Sui Northern Gas Pipelines 4.1pc, Pakistan Petroleum (PPL) 1.3pc and Engro Corp 0.8pc, which together added 143 points to the index gains.

Pak Suzuki Motor Company reported fourth-quarter earnings per share of Rs10.9, down 44pc year-on-year, and dividend per share of Rs5.5. Earnings were above expectations, but the payout was disappointing. PPL furnished second-quarter earnings per share of Rs2.84, down 11pc, and dividend per share of Rs3. Earnings and payout were above expectations.

According to analysts at JS Global, PPL, Oil and Gas Development Company and Pakistan Oilfields closed in the green zone as oil prices rose on expectations that an Opec-led production cut to spur the market could be extended. Hub Power went up 0.64pc as the construction of 1,320MW coal-fired power plant in Hub started on Tuesday.

Ahsan Mehanti of Arif Habib Corp wrote in his report that stocks closed higher led by oil, banking and cement scrips on strong valuations. “Positive sentiments amid foreign inflows, government-proposed PSDP commitments and outcome of CPEC projects played a catalyst role in the bullish close,” Mr Mehanti stated.

Published in Dawn, March 22nd, 2017