KARACHI: The stock market was rampaged by the bulls on Monday who tossed the KSE-100 index up by 1,014.91 (2.7 per cent) points. Investors were caught by surprise over the sudden massive gains which powered past the 38,500 points and closed at 38,562.40. The upsurge represented the highest single day gain in 50 sessions since Oct 24.
Traders and analysts groped for reasons for the rally, attributing it to a number of factors including the oversold market; buoyant investor sentiments over the financial support from friendly countries and the absence of selling by local institutions.
According to figures released by the National Clearing Company of Pakistan Ltd, foreign outflow was $0.61 million. Individuals were the major sellers who seized the opportunity to take profit by selling stocks worth $5.30m, but it was fully absorbed by the mutual funds who took fresh positions of $5.47m. Other than that, positive report by Fitch indicating stalling interest rates by the central bank helped build investor confidence.
Analysts said that the investor exuberance was led by positive developments on financing the external account deficit after conclusion of a successful visit by UAE crown prince. It helped develop market consensus that the current account deficit would significantly ease going forward.
Exploration and production sector remained positive throughout the day on back of higher international crude oil prices as major stocks PPL, OGDC and Pakistan Oilfields collectively added 179 points. Sectors contributing to the performance include banks, higher by 302 points, exploration and production 202 points, fertiliser 158 points, cement 101 points and power 86 points.
Volume bounced from 64m shares to 157.1m shares (surging 144pc). Stocks that contributed significantly were KEL, TRG, Lotte, PAEL and EPCL, which formed 32pc of total turnover.
Scrip-wise, major gainers were PPL, up 4.40pc, UBL 4.99pc, Engro 3.52pc, OGDC 3.78pc and HBL 3.34pc, adding 348 points. On the flip side, NATF, down 2.60pc, took away 3 points.
Published in Dawn, January 8th, 2019