KARACHI: Wednesday was ruled by bulls as they pervaded the market right from the start when the KSE-100 index opened up by 211 points. Moving slightly back and forth, the benchmark did not once drop into the red and closed with hefty gains of 605.45 points (1.86 per cent) at 33,158.84, which also was the day’s highest level.

The trigger that set the stage for the rally was the anticipation of single-digit headline inflation for April which investors believed wou­ld create room for the State Bank of Pakistan to al­­low a further 200 basis points cut in the interest rates.

The positive trend in the international crude prices provided 3-6pc upside in the three major stocks in exploration and production — Oil & Gas Development Company (OGDC), Pakistan Petroleum and Pakistan Oilfields. Investors were further comforted by the sharp recovery in the Asian markets despite the ongoing pandemic scare.

The volume declined 11pc to 140.5 million shares, from 157.9m while traded value increased by 31pc to reach $47.6m, from $36.3m a day ago. Cement sector posted the highest trading turnover with 43.9m shares while oil and gas marketing companies followed with 11.82m. Leading stocks included Maple Leaf Cement, Hascol Petroleum, DG Khan Cement, Engro Fertilisers and Pioneer Cement, which formed 33pc of total volume.

Fertiliser stocks rose on reports that the government was weighing pros and cons of giving direct subsidy to farmers by reducing prices. Cement sector maintained the momentum throughout the day though investors also booked profits.

Among scrips, those that added the most to the index upsurge included Pakistan Oilfields, higher by 6.3pc, OGDC 4.5pc, Lucky Cement 3pc, Fauji Fertiliser 2.7pc, United Bank 1.8pc and Engro Corporation 0.3pc.

Published in Dawn, April 30th, 2020