Stocks pile up near 900 points in pre-poll buying spree

Stocks pulled off another stellar session on Thursday gaining near 900 points as investors continued to pack their portfolios with blue-chip, trading, and investment shares, betting the election next week would be a breeze, dealers said.

Ahsan Mehanti from Arif Habib Corporation said stocks closed higher in the earnings session rally amid a rise in local cement, steel and fertiliser prices. “Higher global crude oil prices, increasing banking spreads, and easing political uncertainty led the market to a bullish finish,” Mehanti added.

Pakistan Stock Exchange’s (PSX) benchmark KSE-100 shares index surged 2.19 percent or 897.69 points to close at 41,795.59 points, while its KSE-30 shares index followed the suit with a jump of 2.53 percent or 511.49 points to end at 20,699.12 points. As many as 376 scrips were astir today, of which 276 moved up, 83 retreated, and 17 remained unchanged.

Topline Securities in its market review said market participation was recorded as the highest in more than 3 months as volume grew 36 percent to 337 million compared to a turnover of 247.827 billion shares in the previous session.

“Similarly, value touched its highest point since April, growing by 52 percent to reach $102 million,” the brokerage said. Zainul Abedin at Elixir Securities said with the index up 4.6 percent the investors were recommended to reduce positions on strength and wait for the outcome of upcoming polls. “It is because the current vulnerable economic situation is likely to remain the center piece of policy level issues for the newly elected government,” Zainul Abedin added.

The market got off to a green start, gaining nearly 900 points on bets the elections would take place without a hitch and on time. The bourse was also abuzz with speculations that rupee’s downward spiral has come to a halt for the time being.

Despite three consecutive strong sessions and a recovery of 2100 points, foreign investors remained the net sellers to the concerns of some investors. Economic Intelligence Unit, an arm of Economist, has reported that the new government would face difficulties owing to several economic challenges including widening current account deficit, higher inflation, rupee depreciating, and exorbitant rise in import, and to overcome these harsh measures would be mandatory.

The highest gainers were Nestle Pakistan, up Rs524.25 to close at Rs11009.25/share, and Island Textile, up Rs45.50 to finish at Rs1284.75/share. Companies that booked highest losses were Phillip Morris Pakistan, down Rs118.00 to close at Rs2359.86/share, and Colgate Palmolive, down Rs84.01 to close at Rs3164.99/share.

K-Electric Limited recorded the highest volumes with a turnover of 22.771 million shares. The scrip gained Rs0.32 to close at Rs5.63/share was followed by Lotte Chemical with a turnover of 21.065 million shares, whereas the scrip gained Rs1 to close at Rs12.87/share. The lowest volumes were witnessed in Sazgar Engineering Works Limited, recording a turnover of Rs27,800 shares, and losing Rs5.74 to end at Rs364.77/share.