KARACHI: Stocks maintained the rising momentum on Monday as the KSE-100 index stormed past 41,000-level to settle firmly at 13-month high 41,644.88. It indicated massive gains of 728.29 points (1.78 per cent) with market capitalisation up by Rs178 billion to cross over Rs8 trillion.

The index opened bullish and kept climbing to touch intraday high of 782 points. Oil and gas sector grabbed the spotlight, particularly Oil and Gas Development Company (OGDC) and Pakistan Petroleum Ltd (PP), which traded near and at upper circuits, respectively.

Traders said that the investors were still enthused by reports of Pakistan’s offer to Russia to participate in the divestment of government’s shareholding in those two largest state-run oil and gas explorers. Senior market players attributed the surge to political calm and continued improvements in macro indicators.

The volume increased 32pc to 358 million shares, from 271m shares. Oil and gas marketing companies contributed the highest 87m shares. Traded value also increased by 20pc to reach $90.3m, as against $75.3m. Stocks that contributed significantly included Hascol (right issue), Unity Foods, Sui Southern Gas, Fauji Foods and Pakistan International Bulk Terminal, which formed 37pc of total turnover.

The market was carried forward mainly by companies and mutual funds which picked up equities, managed to absorb the major dumping by banks of shares valued at Rs7.39bn. Traders said that as the year was drawing to a close, banks would be reshuffling their investment portfolio. Foreigners booked profit with sale of equity worth $2.13m.

Sectors contributing to the bullish performance included exploration and production, higher by 221 points, banks 162 points, cement 57 points, O&GMCs 43 points and fertiliser 39 points.

Stock-wise, major gains came from PPL, higher by 5pc, Habib Bank 3.1pc, OGDC 3.4pc, Pakistan Oilfields 3.2pc, United Bank 1.3pc, Lucky Cement 2pc, Engro Corporation 1.1pc, Meezan Bank 3.6pc, Dawood Hercules 2.2pc and Bank Al Habib 1.7pc. Minor falls were noted in MCB, decreasing by 0.6pc, Bank Alfalah 0.7pc and Engro Fertilisers 0.5pc. .

Published in Dawn, December 17th, 2019