KARACHI: The buying spree at the stock exchange extended into the fourth day driving the KSE-100 index up by 839.12 points (2.73 per cent) and closed at 31,621.79.

Investors’ interest was centered on the surge in international oil prices and the Prime Minister’s pledge of announcing incentives for the construction industry. That sent the major exploration and production index-heavy stocks to close at their upper circuits as the Saudi Crown Prince reportedly responded positively to President Trump’s suggestion of production cut signalling a possible thaw in the Saudi Arabia-Russia oil quarrel.

Investors indulged in heavy anticipatory buying in the cement and steel sectors for the third day on assumption of a massive growth in demand going forward as the PM is set to unfold the construction package later in the day.

“As the E&P stocks hit upper circuits, the recently launched Exchange Traded Funds apparently were forced to fill the basket with available stocks (i.e blue chip banks) which also added buying pressure” said Samiullah Tariq, director business development at Arif Habib Ltd.

Buyers shrugged off the Moody’s Investors Service downward revision of the growth forecast for Pakistan from 2.9pc to 2-2.5pc; negative growth of exports by over 6.5pc in March year-on-year and the plunge in foreign exchange reserves by $1.5 billion due to outflow of hot money.

More importantly, the increasing confirmed positive cases of coronavirus and the uncertainty that looms on the economic horizon failed to scare away investors who scrambled to accumulate sending the KSE-100 index up by 3,598 points or 12.8pc, since Monday, representing the highest four-day percentage gains in close to 14 years since June 20, 2006.

Trading volumes decreased 19pc on Friday due to shortened trading time with no second session. Stocks that contributed positively to the index included Hub Power Company Ltd up 115 points, Oil and Gas Development Company 88 points, Pakistan Petroleum Ltd 83 points, United Bank Ltd 63 points and Pakistan Oilfield Ltd 58 points.

Published in Dawn, April 4th, 2020