KARACHI: Stocks staged a grand rally on Monday with the KSE-100 index clocking in gains of 399.15 points (1.16 per cent) and close at 34,749. 57.

The bulls demonstrated their control over the market for most of the trading session with the closing falling slightly short of the intraday high level of 34,771.89 points. The major reason that sparked investors’ interest in equities was the upsurge in exploration and production scrips as international oil prices firmed up due to OPEC+ agreeing on extending record output cuts to the end of July.

The local bourse greeted the news warmly in line with the global market. In E&P, Oil and Gas Development Company, Pakistan Petroleum and Pakistan Oilfields sold like hot cakes. Oil marketing companies also joined to realise gains.

Cyclicals witnessed a pre-budget rally with participants expecting a market-friendly finance bill. Investors were encouraged by the government proposing Rs630 billion outlay for FY21 under the Public Sector Development Programme.

Both institutional and individual investors accumulated shares in cement and steel as expectations ran high relating to cut in duties and taxes on raw material for construction which was thought to be the driving forces of more than 40 downstream industries.

Pharmaceutical scrips continued to add values as they were believed to be fattening their bottom lines on higher demand and consumption in medicine as the pandemic continues to ravage. Moreover, investors bet on several companies which may be the earliest to come up with a vaccine for cure or protection from COVID-19. Banking also performed well, mainly courtesy of the three big players - Habib, United and MCB - which managed decent gains.

The volume surged 150pc to 222.4m shares, from 89.1m while traded value also increased by 119pc to reach $53.1m. Stocks that contributed significantly included TRG, Hascol Petroleum, Maple Leaf Cement, Hum Network and Pioneer Cement.

Scrips that accounted to major rise in index were Oil and Gas Development Company, up 1.9pc, Habib Bank 1.1pc, MCB 3.6pc, Pakistan Petroleum 2.5pc, Lucky Cement 1.4pc, United Bank 3.2pc, Pakistan Oilfields 5.2pc and Engro Fertilisers 1.2pc

Published in Dawn, June 9th, 2020