KARACHI: Stocks rallied on Thursday after a two-day rout, with the benchmark KSE-100 index recovering 374.15 points (0.76 per cent) to close at 49,588.3.

The banking sector led the gainers with United Bank rising 2.42pc, Habib Bank 0.88pc and MCB Bank 1.10pc. They were supported by the Oil and Gas Development Company whose share increased 1.59pc and Millat Tractors 5pc. The five scrips together added 161 points to the index.

Dealers suggested that the sharp spurt in prices of several big banking stocks was seen due to foreign buying.

The data released on Thursday by the National Clearing Company of Pakistan Ltd showed foreign portfolio inflow of $3.55 million, which can help boost investor sentiment as it comes after incessant foreign sell-off for a long period.

The overall volume declined to 263m shares from 417m shares traded a day earlier. Trading value also fell to Rs14.3 billion from Rs17.5bn. Almost 59 stocks hit their upper circuits, in contrast with 13 scrips closing on their lower limits.

Market participants were slightly concerned over the lower local investor participation as they fixed their gaze on negative factors such as liquidity crunch, the Panama Papers case hearing, and law and order situation.

Millat Tractors closed at its upper price limits of 5pc following an impressive earnings announcement for July-December and the possibility of becoming part of a consortium to assemble cars.

Similarly, Pakistan Nat­ional Shipping Corporation also closed at its upper limit after reports that the shipping company would add three oil tankers to its existing fleet of nine ships.

Published in Dawn February 17th, 2017