Stocks jump over one percent as energy, fertiliser shares gain

Stocks surged 1.38 percent on Monday as positive developments in gas and fertiliser sectors attracted institutional flows amid rising global equity and commodity markets, dealers said.

Analyst Ali Raza at Elixir Securities said equities continued its winning streak as it recorded another strong run where benchmark KSE-100 index crossed the 43,000 mark. “Market opened on a strong note and built on gains as the day progressed aided by strong institutional flows,” he added.

Pakistan Stock Exchange (PSX) KSE-100 shares index gained 1.38 percent or 588.13 points to close at 43,112.12 points. KSE-30 shares index gained 1.41 percent or 302.96 points to close at 21,760.91 points. As many as 394 scrips were active of which 295 advanced, 78 declined and 21 remained unchanged.

The ready market volumes stood at 270.61 million shares as compared with the turnover of 260.94 million shares a day earlier.

Analyst Ahsan Mehanti at Arif Habib Corp said stocks closed bullish led by blue-chip banking, oil and auto scrips on strong valuations.

“Higher global equities, foreign inflows, upbeat cement sales, surging global crude oil prices and revision in local auto prices led earnings season rally,” the analyst added.

Initial gains were led by listed gas utilities, Sui Northern Gas (SNGP), up 5.0 percent and Sui Southern Gas (SSGC), up 5.0 percent, as investors cheered news of third LNG pipeline approval by the government.

Crescent Steel (CSAP), up 5.0 percent, that enjoys monopoly in making steel pipes used for gas and oil transmission also rallied on the aforementioned development.

Fertilisers came under the limelight on expected new fertiliser policy that will benefit industry; Fauji Fertilizers (FFC), up 5.0 percent and Fauji Fertilizer Bin Qasim (FFBL), up 5.0 percent closed limit up. Financials closed higher with index heavy Habib Bank (HBL), up 3.3 percent and United Bank (UBL), up 2.2 percent leading gains on heavy buying interest.

Going forward, analysts see stock-wise consolidation at current levels, however, compelling valuations and fresh liquidity is expected to support bullish momentum in the near future.

Companies reflecting highest gains include Phillip Morris, up Rs150 to close at Rs3,190/share, and Wyeth Pakistan, up Rs75.86 to close at Rs1,593.07/share.

Companies reflecting most losses include Nestle Pakistan, down Rs300 to close at Rs11,400/share, and Bata Pakistan, down Rs106.61 to end at Rs2,496.66/share.

Highest volumes were witnessed in Worldcall Telecom with a turnover of 35.26 million shares. The scrip gained 21 paisas to close at Rs3.17/share.

Azgard Nine was second with a turnover of 15.654 million shares. It gained 91 paisas to close at Rs15.36/share. Aisha Steel Mill was third with a turnover of 12.921 million shares. It gained 94 paisas to finish at Rs19.84/share.