KARACHI: Stocks extended their winning steak for the third consecutive sessionon Mondaywith the KSE-100 index recording gains of 355.48 points (0.83 per cent) to close at 43,268.29.
The market started on a cautious note on account of the terrible month of May when the index plunged 2,642 points (5.8pc) to record the highest monthly loss in the preceding seven months.Investors’ confidence was bolstered after the smooth transition of power to the caretaker Prime Minister Nasir ul Mulk who pledged to hold elections on time. The index hit intraday low and high by 80 and 381 points.
Local institutional investors showed interest in key sectors such as oil, banking, fertiliser and cement. Trading figures released by the National Clearing Company of Pakistan showed substantial foreign sale of $12.81 million. In May, foreign sales had clocked in at$85m, representing highest monthly net salesin nine months.
Sui Northern Gas Pipelines and Sui Southern Gas Company grabbed the spotlight after the Oil and Gas Regulatory Authority issued tariff regime which would be a market-based return formula, giving an edge over the previously proposed after-tax return. Both stocks closed at their upper circuit with brisk trading, accounting for 12pc of the day’s aggregate volume.
Major heavyweights Habib Bank, up 1.09pc, Oil and Gas Development Company 1.34pc, Pakistan Petroleum 1.34pc, Engro Corporation 2.94pc, MCB Bank 1.59pc, United Bank 1.19pc, Pakistan Oilfields 1.46pc, Lucky Cement 0.91pc and Fauji Fertiliser 0.72pc cumulatively contributed 230 points to the indexgain.
Although the index closing near the intraday high raised hopes of further improvement in market, the impending verdictby FATF on Pakistan’s inclusion in the terror-financing grey list and relentless foreign sales were stumbling blocks for the market going forward.
Published in Dawn, June 5th, 2018
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