KARACHI: Activity stepped up at the stock market on Thursday as investors started to accumulate stocks ahead of the State Bank monetary policy due to be announced that evening.

The KSE-100 index opened on a positive note and climbed to intraday high by 240 points, before closing at 40,799.53, representing sizeable gains of 192.41 points (0.47 per cent).

The volume remained confined to small and mid-cap stocks for most part of the day, but positive results by big ticket companies garnered buyers’ interest in selected blue-chip scrips.

“The market rallied as investors’ confidence was once again restored on back of various developments on macro front, where cash deposits from Saudi Arabia and UAE played a major role,” stated analysts at Topline Securities.

Investors were also encouraged to buy lest they miss out on opportunity after witnessing a double-digit 10.1pc return provided by the index in January, representing a 25-month high.

The icing on the cake was the rejuvenation of foreigners’ interest who turned net buyers after almost a year of incessant sell-off. Under the circumstances, market pushed the International Monetary Fund issue on the back burner. Yet pragmatists suggested caution until the clarity emerged on the Fund package.

Traded volume almost doubled from 125 million shares a day ago to 239m shares on Thursday while value increased 76pc to $63m, from $35.8m. Stocks that contributed significantly included Pakistan International Bulk Ter­minal (PIBTL), Worldcall Telecom, Pak Elektron, Engro Polymer and Chemical and Dewan Cement, which formed 34pc of aggregate turnover.

Major contribution to the index upside came from Searle Company, up 3.82pc, PIBTL 7.67pc, Fauji Fertiliser 1.18pc, Pakistan Oilfields 1.32pc and Dawood Hercules 1.78pc, adding 88 points. On the flip side, Pakistan Tobacco decreased 4.99pc to take away 36 points.

Analyst Ahsan Mehanti summed up reasons for the positivity stating that the Moody’s upbeat report on mini-budget fostering exports and manufacturing, foreign inflows and surging global crude prices helped lift sentiments.

Published in Dawn, February 1st, 2019