KARACHI: The stock market saw bulls in complete command on Monday with the KSE-100 index crashing past the 38,000 level to add another massive gain of 827.67 points (2.20 per cent) and settling at 38,411.56 – last seen in early April.

After almost 12 sessions of a gaining spree, many analysts were expecting some consolidation and cooling. But that was not to be as index opened in positive and surged to intraday high by 869 points with heavy investor participation.

Foreigners bought stocks worth $4.25 million and mutual funds and individuals together built positions of cumulative $7.79m, which nullified the impact of heavy profit-taking by banks amounting to $8.22m and insurance companies sell-off at $5.18m

The investors’ exuberance seems to be based on the drastic cut in yields in government papers (T-bills), which was followed by the reduction in National Savings Schemers. Despite the higher than expected inflation for October, most risk takers were betting on easing in interest rate cycle in the monetary policy to be announced on 22nd.

Market was expecting temperatures to simmer down on political side as the former prime minister was granted permission to fly overseas on Tuesday while the JUI (F) march and sit-ins, had lost steam.

Buying activity was largely seen in banks, cement, fertiliser and exploration and production with major scrips in all sectors hitting their upper circuits. The volume surged 26pc to 466m shares — 29-month high — while traded value shot up by 61.7pc to $99m, last seen on Nov 30, 2018. Stocks that contributed significantly included Bank of Punjab, K-Electric, Fauji Cement, Fauji Fertiliser and Hum Network, which formed 24pc of total turnover.

Scrip-wise major contribution upside came from Engro Corporation, up 4.33pc, Hub Power 4.99pc, United Bank 3.87pc, Lucky Cement 4.59pc, Pakistan State Oil 5pc, Fauji Fertiliser 2.32pc, Pakistan Petroleum 1.72pc, Pakistan Oilfields 2.38pc, Pakistan Tobacco 4.13pc and Meezan Bank 4.34pc.

Published in Dawn, November 19th, 2019