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Tuesday March 19, 2024

Stocks gain in extended rally on economic hopes, political thaw

By Our Correspondent
January 09, 2019

Stocks on Tuesday maintained previous day's momentum as positive sentiments sustained on hopes of more financial support pouring in from friendly countries and easing political tension in the country, dealers said.

Analyst Ahsan Mehanti from Arif Habib Corporation said stocks closed bullish on investor speculation in the earning season rally amid abating political noise and United Arab Emirates’ (UAE) financial support affirmations.

“The government projected targets for GDP growth at 5.8 percent for 2018-23 and rising global crude oil prices played a key role in the higher close at the apex bourse,” Mehanti added. Pakistan Stock Exchange’s (PSX) benchmark KSE-100 shares index gained 1.27 percent or 490.10 points to close at 39,052.50 points level. KSE-30 shares index followed suit with a high of 1.63 percent or 296.18 points to end at 18,505.41 points level.

Of 367 active scrips, 241 moved up, 103 retreated, and 23 remained unchanged. The ready market volumes stood at 166.790 billion shares, as compared with the turnover of 157.103 billion shares in the previous session.

Murtaza Jaffar, analyst at Elixir Securities, said stocks rallied on back of rising crude oil prices that helped boost shares in oil marketing, gas, and refineries groups. Jaffar said refineries rallied as government issued notification to immediately ban imports of furnace oil and ordering refineries to enter into agreements with independent power producers for utilisation of latter's capacity for storage.

The stock market for the second consecutive session recorded appreciable deals and investors deployed fresh funds in choice equities across the board, following government’s effort to place the economy on track.

The recent visit from the UAE crown prince unfolded that they will make huge investment in the oil sector installing a refinery in the country. Moreover, the government said the oil facility from Saudi Arabia was expected to start this month, while some modalities have been finalised and oil credit facility or on deferred payment from UAE would also commence next month, encouraged number of players of the market.

Refinery sector was once again on the buying chart, following the government’s imposing a ban on the import of furnace oil. Furthermore, the concerned ministry has also asked refineries to finalise commercial contracts with the power companies to buy and store furnace oil to reduce the burden of stocks. Moreover the Petroleum Division has asked the refineries to improve the quality of their products and increase storage facility. This development was enough to set refineries stocks on fire. As a result, Attock Refinery was up Rs6.67/share, National Refinery Rs5.03, and Pakistan Refinery gained Rs1.12/share. The highest gainers were Mari Petroleum, up Rs44.78 to close at Rs1389.23/share, and Wyeth Pakistan Limited, up Rs36.13 to finish at Rs1032.63/share. Companies that booked highest losses were Pakistan Tobacco, down Rs52.00 close at Rs2796.00/share, and Siemens Pakistan, down Rs22.99 to close at Rs802.00/share.

TRG Pakistan Limited recorded the highest volumes with a turnover of 9.768 million shares. The scrip gained Rs1.13 to close at Rs24.28/share. The lowest volumes were witnessed in K-Electric Limited, recording a turnover of 10.123 billion shares, and losing Rs0.07 to end at Rs6.22/share.