KARACHI: A spectacular rally in the shortened (four-session) outgoing week enabled the KSE-100 index to collect 1,667 points (3.84 per cent) and power past the strong barrier of 45,000 to close at 45,030.22.

The investors’ interest in stocks was triggered by the surprise depreciation of the rupee by 4pc. Several investors recollected that the week, though shortened by a session, sprouted the second best weekly performance in percentage terms in the current calendar year.

The rising international oil prices further fuelled the rally. In the heat of the moment, investors shrugged off Moody’s recent outlook warning Pakistan of downgrade risk due to high debt burden, political instability, shaky external account position and weak infrastructure. Investors sensed the government’s recent efforts at bringing the economy back on the tracks in right earnest through other measures such as the expected announcement of tax amnesty scheme and inflow of friendly loans from the neighbouring countries.

Foreigners, who were waiting and watching for the adjustment of the rupee, snapped the seven-week selling streak with net buying of $0.16 million worth stocks in the outgoing week against an outflow of $10.46m the preceding week. Among local participants, mutual funds were net buyers at $12.2m while individuals were leading sellers of $17.2m, where small investors decided to take profit while the going was good.

Banks were the lead gainers with stock price spiralling by 8.9pc and contribution of 814 points to the index on market expectations of uptick in policy rate by 25-50bps in the monetary policy likely to be announced this week. Exploration and production also remained in the spotlight with a gain of 3.2pc (248 points) on increase in Brent price by 5pc .

Power sector gained 3.9pc and textiles were up 2.6pc, while independent power producers rose 2.1pc due to their dollar-indexed revenues. Fertilisers added 219 points while cement sector too raced with the gainers with upside by 3.4pc on rumours of manufacturers increasing price of cement per bag by Rs10 in the northern zone.

The average daily traded volume stood at 192.85m shares, up 10.29pc over the preceding week with Lotte Chemical, at 64.91m shares, TRG Pakistan 54.96m shares, Nimir Resins 43.39m shares, Unity Foods 32.85m shares and Fauji Foods 29.08m shares as the leaders. The average traded value rose by 38.3pc to $76m.

Scrip wise major gainers were Habib Bank, increasing by 199 points, MCB Bank 158 points, Bank Al Habib 154 points, United Bank 137 points and Lucky Cement 95 points.

Leading performers of the week according to a brokerage firm’s universe included: Fauji Fertiliser Bin Qasim, up 15.25pc week-on-week, MCB Bank 11.01pc, Engro Foods 9.20pc, UBL 7.20 and HBL 6.41 while the laggards were Pak Suzuki, down 1.58pc, Indus Motors 1.35pc, Pioneer Cement 0.50pc, and Amreli Steels 0.46pc.

Published in Dawn, March 25th, 2018