Stocks rally 371 points as value hits year high

Updated December 06, 2019

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Investors dashed ahead in the raging bull market that saw the KSE-100 index tossed higher by 371 points (0.92 per cent) and close at 40,641 on Thursday. — AFP/File
Investors dashed ahead in the raging bull market that saw the KSE-100 index tossed higher by 371 points (0.92 per cent) and close at 40,641 on Thursday. — AFP/File

KARACHI: Investors dashed ahead in the raging bull market that saw the KSE-100 index tossed higher by 371 points (0.92 per cent) and close at 40,641 on Thursday.

The significant feature of day’s business was the traded value of shares which stood at a staggering Rs20bn, representing the highest value traded seen in 370 days since Nov 30, 2018.

Bullish sentiments were largely sparked by Moody’s positive change in outlook on five Pakistani banks from negative to stable, which helped brisk buying in the banking stocks.

Cyclical cement and steel also edged higher on reports of increase in cement despatches over the five months of FY20. The volume also crossed 500 million shares with major business noted in cement at 111.6m, followed by banks 51.4m and power 36.6m shares. Among scrips, Unity Foods registered turnover of 35.2m shares, followed by Fauji Cement 34m and Maple Leaf Cement 20.5m.

Analyst Ahsan Mehanti said the shares closed higher led by oil, banking and cement scrips amid upbeat data on the latter’s sales for Jul-Nov’19, rising global crude oil prices and Moody’s upgrade on banks.

Further, foreign inflows, upbeat POL products sales data in Nov’19, rising exchange reserves and improving economic outlook played a catalyst role in bullish close. The noise drowning on the political sector also bolstered investors’ confidence that saw continuation of stabilisation measures by the government and endorsed by the International Monetary Fund.

Sectors contributing to the bullish performance included banks, higher by 105 points, exploration and production 80, oil and gas marketing companies 55, cement 54 and fertiliser 29.

Intermarket Securities identified scrip-wise contribution from Pakistan Petroleum, increasing by 3pc, Pakistan State Oil 2.99pc, Pakistan Oilfields 2.15pc, Oil and Gas Development Company 0.57pc, Habib Bank 1.66pc, National Bank 4.80pc, Allied Bank 4.96pc and Habib Metro 4.18pc. In addition, Sui Northern Gas rose 4.82pc, Lucky Cement 1.77pc, Engro Fertiliser 2pc and DG Khan Cement 3.97pc also carried the index higher.

Published in Dawn, December 6th, 2019