KARACHI: Stocks kept up the gaining momentum on Thursday with bulls tossing the KSE-100 index up over one more hurdle of 40,000 points, posting stellar gains of 799.47 points (1.98 per cent) and closing at 41,127.79.

Mutual Funds, picking up equity worth $4.58 million, joined the individuals who bought shares of $5.64m. Banks continued to book profit to avail the windfall gains on index upsurge of 12,000 points since Aug 16 as their year-end was close at hand. Brokers also sold shares of $4.96m as many were worried over an oversold market position.

Traders also said that visible improvement in country’s economic indicators, also endorsed by the International Monetary Fund in its first review, was at the heart of the investors’ enthusiasm. Buying activity was observed across the board, but focusing on oil and gas exploration and production sector (E&P), refineries, oil marketing companies and banks.

The volume edged up 0.3pc to 236.8m shares, from 236.2m while traded value decreased by 10pc to $51.3m, as against $56.5m the previous session. Stocks that contributed significantly included Unity Foods, Worldcall, Hascol (right issue), Fauji Foods and TRG Pakistan, which formed 38pc of total turnover.

Sectors contributing the most points to the performance included banks, higher by 360 points, E&P 140 points, oil and gas marketing companies 54 points, power 44 points and investment banks 35 points.

Scrip-wise, Habib Bank was up 4.6pc, Oil and Gas Development Company 3.4pc, Bank Al Habib 4.3pc, United Bank 3.1pc, Pakistan Petroleum 2.2pc, MCB 1.9pc, Hub Power 1.8pc and Dawood Hercules 3pc.

In addition, Unity Foods, increasing by 6.7pc, Shell 5pc, Meezan Bank 5pc and Hascol 5pc all closed at their upper circuits. Among the scant laggards were Pakistan Tobacco, down 5pc, EFU General 5pc and Murree Brewery 1.5pc.

In the short run, analysts were optimistic about the rally to continue as the index closed near intraday high of 41,148, representing investors’ appetite for more.

Published in Dawn, December 27th, 2019