KARACHI: Bulls were not only back with a vengeance but their ferocity took investors by surprise as they tossed the KSE-100 index over the 41,000-level initially before settling at 40,916.69 post second session with gains of 402.42 points (0.99 per cent).

As the market opened, excited investors jostled for energy stocks with two major scrips in the sector sold like hot cakes. Pakistan Petroleum Ltd (PPL) quickly hit its upper circuit while Oil and Gas Company Development Company (OGDC) also settled close to its maximum lock.

Traders said the investors’ euphoria for the two stocks was generated by reports that Pakistan had offered Russia to participate in the divestment of government’s shareholding in the country’s largest state-run oil and gas explorers – OGDC and PPL - and become a strategic partner by acquiring shares.

The massive activity in these two had a snowball effect on the market, spurring prices of major blue chips. Besides the exploration and production stocks, buying activity was observed in banking and oil and gas marketing companies. Autos, cement and steel were generally among the laggards.

With active participation from mutual funds that purchased shares of the net value of $5.50 million, volume increased 19pc to 271m shares while traded value also rose by 39pc to $75.3m, from $54.3m. Stocks that contributed significantly inclu­d­ed Unity Foods, Bank of Punjab, Fauji Foods, Avan­ceon and OGDC, which for­med 30pc of total turnover.

Scrip-wise, the rally was led by blue chips with PPL higher by 5pc, OGDC 4.1pc, Habib Bank 1.34pc, Pakistan State Oil 2.88pc, Sui Northern Gas Pipelines 4.25pc, Nishat Mills 5pc, United Bank 0.77pc, Dawood Hercules 1.16pc, Lucky Cement 0.93pc and ICI Pakistan 5pc.

Published in Dawn, December 14th, 2019