KARACHI: The rally gathered momentum at the stock market on Wednesday as KSE-100 index surged 635.88 points (1.66 per cent) and closed at 38,965.01. It represented the second-highest single day gains in 2019 with across the board buying as two-third of the stocks turned green.

The investors’ resurgence of interest in equities was underpinned by optimism over the International Monetary Fund package as clarity seemed to emerge after marathon sessions with the mission chief over measures to be adopted for increase in revenue collection and grapple with the problems of external account.

For the second day, exploration and production sector remained highest contributor of 118 points as investors pinned hopes on prime minister’s statement of a possible discovery of oil and gas in offshore drilling. In frenzied buying where institutions worried not to be left behind, investors put aside the repercussions of the State Bank’s monetary policy due on Friday where several bankers anticipated a heavy spike of up to 50 basis points. Participants also put behind the usual anxiety of the rollover week.

The market started positive and the index shot up all the way to intraday high by 652 points with the closing seen slightly short of that mark. The volume surged 165pc to 229 million shares, from 86m shares with the leaders’ list dominated by Unity Foods which saw change of hands in 80m shares, accounting for 35pc of the total volume as the shareholders exercised their right of subscription. Meanwhile, traded value increased by 73pc to $43.8m.

Major contribution to the index upside came from Pakistan Petroleum, up 3.03pc, Lucky Cement 3.89pc, Engro Corporation 1.84pc, United Bank 2.48pc and Oil and Gas Development Company 1.64pc, adding 215 points. On the flip side, Nestle Pakistan, down 4.39pc, MCB 0.77pc and Murree Brewery 2.47pc took away 34 points.

Published in Dawn, March 28th, 2019