Benchmark index increases 2.03% to settle at 32,070.81 points. PHOTO: AFP
Following two bearish sessions, the stock market exhibited a U-turn and erased losses of the past two days.
After a brief open in the positive zone, the market fell, but robust investor sentiment again took it into the positive territory. The first session ended with a gain of 215 points.
The second session also opened positive and the rally continued, helping the market close with considerable gains.
At close, the benchmark KSE 100-share Index recorded an increase of 636.92 points, or 2.03%, to settle at 32,070.81 points.
Arif Habib Limited, in its report, said the market opened on a positive note with a rise of 94 points although volumes were very low at the beginning of the session.
"By the end of first session, the benchmark index had gone up by 261 points, with trading in 36.9 million shares," it said. "The second session saw a significant jump in both volumes and points with overall volumes of 134.5 million shares and surge in index of 650 points." The market closed with a hike of 637 points.
Besides the oil chain (exploration and production firms, oil marketing companies and refineries), buying activity was seen in the cement sector, supported by expectation of an increase in cement prices in the north, and in the banking sector.
The cement sector led the volumes with trading in 22.7 million shares. Major contributors were Maple Leaf Cement (13.1 million shares) and DG Khan Cement (3.4 million). The cement sector was followed by banks (20.9 million shares) and power companies (20.8 million).
Among banks, The Bank of Punjab enjoyed heavy trading with 14.4 million shares changing hands. In the power sector, K-Electric recorded trading in 17.6 million shares, the report added.
JS Global analyst Maaz Mulla said the stock market had a bullish momentum throughout the day, where the KSE-100 index touched an intraday high of +652 points and closed at 32,071 (up 2%).
"This positive run can be attributed to the last day of the rollover week, when investors' interest was seen in cement, exploration and production and banking stocks," the analyst said.
Trading volumes were up 9% day-on-day to 135 million shares while traded value swelled 21% to $27 million.
K-Electric (+3.1%), The Bank of Punjab (+6.7%) and Maple Leaf Cement (+2.4%) were among volume leaders of the day.
DG Khan Cement (+4.8%), Pioneer Cement (+3.8%), Fauji Cement (+3.9%), Lucky Cement (+2.4%) and Cherat Cement (+4.3%) were major movers of the cement sector.
In the exploration and production sector, Pakistan Oilfields (+2.2%), Oil and Gas Development Company (+3.1%) and Pakistan Petroleum (+2.8%) went up.
"Moving forward, we expect the market to remain above 32,000 points, where we recommend investors to buy on dips," the analyst said.
Overall, trading volumes increased to 135.2 million shares compared with Thursday's tally of 124.5 million. The value of shares traded during the day was Rs4.3 billion.
Shares of 344 companies were traded. At the end of the day, 249 stocks closed higher, 76 declined and 19 remained unchanged.
K-Electric was the volume leader with 17.6 million shares, gaining Rs0.11 to close at Rs3.63. It was followed by The Bank of Punjab with 14.4 million shares, gaining Rs0.55 to close at Rs8.75 and Maple Leaf Cement with 13.1 million shares, gaining Rs0.34 to close at Rs14.73.
Foreign institutional investors were net buyers of Rs75.5 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
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