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Stocks soar 589 points ahead of IMF loan approval

Updated July 04, 2019

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Market kicked off on a positive note and rose to intraday high by 631 points. — AFP/File
Market kicked off on a positive note and rose to intraday high by 631 points. — AFP/File

KARACHI: Stocks extended the gaining streak for third day as the KSE-100 index surged by 589 points (1.72 per cent) and closed at 34,897. Investors’ interest in the market seems to be growing with hike in volume and around 995 points gains in the last three days.

Market kicked off on a positive note and rose to intraday high by 631 points. The rally was supported by the rejuvenation of investor interest as they expected the IMF executive board to approve the $6 billion facility and appreciation in the value of rupee. Market also remained strong as Consumer Price Index for June came out at much lower than consensus expectations.

The gains were led mainly by fertiliser, banking and exploration and production and further supplemented by cement sector, whose stocks closed higher on the back of an increase in prices. DG Khan and Maple Leaf hit their upper lock while Lucky surged 2.96pc.

Reports suggested that the Gas Infrastructure Development Cess resolution was expected soon, which would have a positive impact on the earnings of fertiliser scrips. All major auto stocks witnessed strong investor interest with Pak Suzuki and Honda Atlas hitting their upper locks while Indus Motors was up by 1.5pc.

The volume jumped 43pc to 130.3 million shares, from 91m while traded value increased by 58pc to $30.5m as against $19.3m. Stocks that contributed significantly included Lotte Chemical, TRG Pakistan, Unity Foods, Bank of Punjab and Maple Leaf, which formed 29pc of total volume.

Major gainers were Fauji Fertiliser, higher by 69 points, Pakistan Petroleum 48 points, Habib Bank 45 points, Oil and Gas Development Company 41 points and MCB 37 points. On the flip side, Pakistan Oilfields decrease by 7 points, Habib Metro 4 points, ICI 3 points, Systems Ltd 3 points and K-Electric 2 points.

Published in Dawn, July 4th, 2019