Stocks surged over four percent on Thursday, stretching its rally for the third consecutive session, aided by energy and cement shares, dealers said.Brokerage Topline Securities in a post market...
Stocks surged over four percent on Thursday, stretching its rally for the third consecutive session, aided by energy and cement shares, dealers said.
Brokerage Topline Securities in a post market note said lower inflation number, 10.2 percent, for the month of March continue to garner investor interest. “Rebound in international oil prices and news of Prime Minister`s construction sector package to be revealed tomorrow (Friday) also provided stimulus to the market,” the brokerage said.
“Resultantly E&P and cement sector lead the gains in the market, where most scrip from these sector closed at their respective upper circuits.” Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 4.33 percent or 1277.10 points to close at 30,782.67 points level. KSE-30 shares index followed suit with a high of 4.84 percent or 625.58 points to end at 13,546.88 points level.
During the last three consecutive sessions, benchmark index gained 2,759 or 9.8 percent points which is the highest three-day gain since October 2018. It has been the highest three-day jump in percentage term since August 2008 which was around 10.3 percent.
Of 366 active scrips, 312 up, 47 retreated, and 7 remained unchanged. The ready market volumes stood at 311.585 million shares, as compared with the turnover of 193.711 million shares in the previous session.
Globally oil prices rocketed over 10 percent, propelled on back of China resumed buying of crude oil for its state reserves. This development induced heavy buying in local oil explorers including OGDC and PPL.
Samiullah Tariq, director research at Arif Habib said the index recorded a decline of 24 percent in the last month, making several companies highly attractive which resulted in cherry pick buying since last three sessions.
“Moreover, fresh buying witnessed in cement and steel sectors on back of the Prime Minister Imran Khan announcement that a package for the construction sector would be announced,” Tariq said. “This bodes well as any measure for construction industry would have a spinning impact on other sectors too and creating jobs.”
Sateesh Balani, director research at Ismail Iqbal Securities said equities sustained bullish momentum on the government relief package for construction sector. He suggested that construction activities will be allowed despite lockdown.
Cement stocks remained in limelight and was volume leader churning 21 percent of market volumes. “Banks, E&PS and cements led the index gains, cumulatively adding 728 points,” Balani said.
The top gainers were Mari Petroleum, up Rs71.29 close at Rs1,021.95/share, and Wyeth Pakistan Limited Rs55.33 to finish at Rs794.93/share. Rafhan Maize down Rs87.00 to close at Rs6,900.00/share, and Colgate Palmolive Rs72.86 to close at Rs2,017.14/share, were the main losers.
Hascol Petrol recorded the highest volumes with a turnover of 29.537 million shares. Whereas the scrip gained Re1 end at Rs12.78/share.
The lowest volumes were witnessed in Oil & Gas Development recording a turnover of 8.752 million shares, whereas the scrip gained Rs5.72 to end at Rs82.02/share.