Stocks rise; new year, new high

Pakistan Stocks Exchange (PSX) continued the new year celebrations on Tuesday as the benchmark index gained over one percent duly supported by an across the board institutional buying, dealers said.

Faisal Bilwani at Elixir Securities said equities continued to rally at full throttle led by persistent and unprecedented buying from local money managers that pushed benchmark KSE-100 Index to a new high.

“A remarkable surge in activity was witnessed and the turnover nearly eclipsed the record of $206 million, seen in January 2015.”

The KSE-100 shares index gained 587.27 points or 1.22 percent to close at 48,827.55 points. KSE-30 shares index gained 480.32 points or 1.84 percent to end at 26,624.60 points. As many as 430 scrips were active of which 208 advanced, 199 declined and 23 remained unchanged.

The ready market volumes stood at 501.264 million as compared to 376.687 million shares a day earlier.

Analysts said after a brief positive open, stocks traded volatile and witnessed a short phase of profit-taking that pulled benchmark KSE-100 index in red.

However, steady strong flows from both local and foreign investors in notable blue-chip not only helped the rebound but also sent stocks across financials, fertilizers, oils and cements soaring to new highs.

Notably, oils were higher as they tracked global crude while excitement in textiles was primarily driven by bets on hopes of announcement of a relief package. Fertilizers carried momentum with Engro Fertilizers (EFERT) hitting upper price limit while Fauji Fertilizer (FFC) closed 3.0 percent higher on volumes not seen since nearly two years.

With hearing of Sharif family's case related to Panama allegations resuming, analysts see cautious trading and investors certainly keeping a close watch on proceedings.

Momentum driven by domestic liquidity continues to surprise many and volatility is likely to increase with gains likely consolidating near current levels.

Abrar Juma at Global Research said local bourse witnessed another stellar rally.

“Upside mainly came from the heavyweight sectors namely E&P and cements, pitching in 123 points and 181 points, respectively,” Juma said.

“The former up heaved as a result of an increase in international oil prices while tremendous activity was witnessed in the latter as investors likely placed their bets on record cement off-take and strong earnings in light of various developmental projects.”

Companies posting highest gains include Unilever Foods, up Rs150 to close at Rs6000/share and Rafhan Maize, up Rs90.01 to close at Rs8590/share.

Companies posting major losses include Sanofi Aventis, down Rs71.03 to end at Rs2888.68/share and Colgate Palmolive, down Rs50 to end at Rs1750/share.

Highest volumes were witnessed in Dost Steels Limited with a turnover of 61.765 million shares. The scrip gained 17 paisas to close at Rs13.29/share. K-Electric Limited was second with a turnover of 28.86 million shares. It ended at Rs9.52/share without any change. Engro Polymer was third with a turnover of 21.257 million shares. It gained 45 paisas to finish at Rs18.99/share.