KARACHI: Stocks staged a grand rally on Wednesday with the KSE-100 index posting strong gains of 1,031 points (2.5 per cent) to close at 42,310.
The activity picked up pace after nine thinly traded sessions with the volume reaching 174 million shares, up 75pc from the earlier day. It was 40pc higher than the average daily trade for September.
Azgard Nine and TRG Pakistan were volume leaders. The value surged 79pc from the previous day to Rs9.67 billion.
Brokers and dealers put forth various reasons for the return of the bull after a long dull and drab period. “The rally was likely sparked by strong support at 41,000 points, which has opened up attractive valuations along with the expectation of positive steps to be taken in the upcoming Economic Coordination Committee (ECC) meeting,” said one brokerage in its daily report.
Topline Securities CEO Mohammad Sohail said market sentiments improved in anticipation of the government’s action aimed at boosting exports and cutting down imports in order to improve the deteriorating balance of payments situation.
Others ascribed the upsurge to buying of $5.9m by foreign corporate entities in the last two days. “The market reversal came as we head closer to the FTSE rebalancing expected on Friday (after close of business) to incorporate the addition of five names from Pakistan, namely MCB Bank, Sui Northern Gas Pipelines (SNGP), Bank Alfalah, Millat Tractors and Thal Ltd,” stated analysts at Intermarket Securities.
Top 10 index-point contributors included Habib Bank, which went up 4.5pc, Oil and Gas Development Company 5pc, Engro Corp 4.5pc, United Bank 3pc, Pakistan Petroleum 2.4pc, Pakistan State Oil 3.9pc, Pakistan Oilfields 3.9pc, Lucky Cement 2.5pc, SNGP 3.5pc and Mari Petroleum 5pc.
Investors’ interest in equities was broad based as banks added 261 points, exploration and production companies 204 points, fertiliser companies 157 points and oil marketing companies 103 points. Hascol Petroleum hit its upper circuit on the declaration of a surprise right issue.
Published in Dawn, September 14th, 2017