KARACHI: The stock market staged a strong rally on the first trading day after a long weekend.

The KSE-100 index spiralled upwards by 487.63 points to close at 30,954.83, underpinned by positive expectations from the ongoing Financial Action Task Force meeting in Bangkok, higher international oil prices, uptick in urea prices, investors’ positive outlook of rate cut in the upcoming monetary policy and formation of stock brokers’ committee to consider the stock market situation.

On the political side, US President Donald Trump assured that his offer of mediation is still on the table and acknowledged that the tensions between Pakistan and India had cooled a bit.

The market started off on a firm note and the index propelled to intra-day high by 553 points. Share prices rose across the board except in the cement, steel and oil and gas marketing companies sectors.

Cement sector remained under pressure on account of profit booking as well as increase in international coal prices. Reports suggested the Fauji Fertiliser had increased urea prices, which pushed the price of its stocks up. Engro Fertiliser (EFERT) and Fatima Fertiliser also gained, while Fauji Fertiliser Bin Qasim Ltd close in the negative zone.

In the exploration and production sector, Pakistan Petroleum Ltd (PPL) closed at upper lock, Oil and Gas Development Company (OGDC) closed near upper lock, while Mari Petroleum and Pakistan Oilfields Ltd (POL) gained in a range of one per cent to 2pc. In the banking sector, Habib Bank Ltd (HBL) hit the upper circuit while United Bank Ltd and MCB Bank (MCB) Ltd mostly traded in the green.

Volumes increased 107pc to 99.6 million shares from 48.2m shares in the previous session. Traded value also increased by 103pc to reach $31.6m as against $15.5m. Stocks that contributed significantly to the volumes included Maple Leaf Cement Factory, OGDC, Worldcall Telecom Ltd, EFERT and Hub Power Company, which formed 37pc of total volumes.

Scrips that helped index to stride forward included OGDC, up by 4.67pc, PPL 5pc, POL 1.32pc, HBL 4.67pc, MCB 3.10pc, Bank Al Habib Ltd 2.08pc, Bank AlFalah Ltd 2.27pc and Habib Metropolitan Bank 3.45pc.

Published in Dawn, September 12th, 2019