KARACHI: The benchmark KSE-100 index started the week off on a bullish note on Monday, extending last week’s momentum, and gaining 363.5 points (0.9 per cent). The index closed at 39,412 after hitting an intraday high of 455.41 points.

Investor sentiment was lifted by reports that the third budget will focus on ease of doing business and other measures to increase exports and industrialisation. The market also reacted positively to the news that the government plans to abolish advance tax of 0.2pc on brokers.

Fertiliser was under spotlight as it is likely to benefit from the resolution of Gas Infrastructure Develop­ment Cess. Moreover, pharmaceutical sector recorded significant gains after Drug Regulatory Authority of Pakistan allowed the increase of up to 15pc in the price of medicines.

According to figures released by the National Clearing Company of Pakistan, foreigners were net buyers, increasing their positions by $0.87 million. Amongst local investors, mutual funds, insurance companies and individuals emerged as net buyers raking up $2.25m whereas banks and brokers offloaded their positions by $2.47m.

The volume declined by 7pc to 115m whereas traded value declined by 14pc to $39.5m as investors remained on sidelines awaiting economic clarity. Stocks that contributed significantly included Pak Elektron, K-Electric, TRG Pakistan, Lotte Chemical and Bank of Punjab, accounting for nearly 38pc of the total turnover.

Sector-wise, commercial banks contributed 80 points, fertiliser 65 points, cement 54 points, pharmaceutical 39 points and oil and gas companies marketing companies 27 points to the intraday gain.

Major contribution to the index upside came from Fauji Fertiliser, up 2.8pc, Pakistan Petroleum Ltd 1.6pc, Lucky Cement 2pc, United Bank Ltd 1.6pc and Habib Bank Ltd 1pc. On the other hand, Millat Tractors Ltd was down 2.6pc, Packages Ltd 1.7pc and Atlas Honda 1.4pc.

Published in Dawn, January 15th, 2019