KARACHI: It took more than just a few positives to shake the index out of its slumber as a “relief rally” in regional markets, recovery in the price of international crude oil and lower-than-expected inflation figures helped bullish sentiment.
If that was not enough, a clarification on part of the Securities and Exchange Commission of Pakistan (SECP) and National Accountability Bureau (NAB) breathed life into the market to some extent.
At close on Thursday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 1.43% or 462.90 points to end at 32,750.31.
JS Global analyst Ahmed Saeed Khan said volatility finally subsided with positive sentiments restored in the market. “A 2% recovery of international crude oil prices led to a major gain for oil extraction and production sector where Hascol petroleum (+5.0%), Attock Petroleum (+3.2%) and Pakistan Petroleum Limited (+4.4%) took the lead.
“Cherry picking continued in cements and the whole sector remained marginally positive throughout the day. Major gainers were Maple Leaf Cement Factory (+3.7%), DG Khan Cement (+2.7%) and Fauji Cement (2.0%).
“Lower-than-expected inflation figures, with Consumer Price Index clocking in at 1.32% against 1.80% inflation, might lead to interest rate cut which would burden the banking sector.
“With positive movement on Wednesday that continued on Thursday, the trend in expected to persist, especially with the clarification on the part of SECP and NAB.”
Elixir Securities, in its report, stated equities closed the day with healthy gains as announcement of a multi-decade low inflation and relief rally in the region ensured Wednesday’s late-day momentum to sustain in the market.
“Stocks opened gap up tracking the region while reports of institutional buying coupled with mid-day announcement of lower-than-consensus inflation reading of 1.3% year-on-year for September breathed new life into KSE.
Trade volumes fell to 180 million shares compared with Wednesday’s tally of 210 million shares.
Shares of 361 companies were traded on Thursday. At the end of the day, 240 stocks closed higher, 102 declined while 19 remained unchanged. The value of shares traded during the day was Rs9.4 billion.
TRG Pakistan was the volume leader with 17.6 million shares, gaining Rs1 to finish at Rs33.98. It was followed by Pak Electron (XD) with 11.1 million shares, gaining Rs3.60 to close at Rs75.69 and Maple Leaf Cement Factory with 10.2 million shares, gaining Rs2.51 to close at Rs71.05.
Foreign institutional investors were net buyers of Rs255 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.