PSX gains 1.44 percent, led by banking shares

Stocks gained 1.44 percent on Thursday as CPI numbers piqued the investor interest in banking shares, while a regulatory clearance revved up trade, dealers said.

“Stocks sharply rose after the Securities and Exchange Commission of Pakistan (SECP) clarified that measures were for non-compliant brokerage firms,” said Ahsan Mehanti, analyst at Arif Habib Corp.

The KSE 100-share Index of Pakistan Stock Exchange (PSX) gained 1.44 percent or 703.92 points to close at 49,696.08 points. KSE 30-share Index rose 1.74 percent or 459.32 points to end at 26,928.51 points. As many as 420 scrips were active; of which 294 increased, 108 decreased and 18 remained unchanged.

The ready market volumes stood at 398.532 million as compared to 234.95 million shares a day earlier. Analyst Nabeel Haroon at JS Global said the market extended its previous day gains. “The positivity in the market can be attributed to the SECP’s assurance that in-house financing position of brokerage houses is no longer a matter of concern and the regulator is taking all the necessary measures to protect investors’ interest,” Haroon said.

Banking sector led the rally as consumer price index (CPI) inflation number for February clocked in at 4.22 percent as against 3.66 percent in January 2017. HBL (up 3.08 percent), MCB (rising 1.58 percent) and UBL (increasing 1.43 percent) were the major index movers. Mari Petroleum, SEARL, Engro Fertilizer, Fauji Cement and Nishat Mills gained on their inclusion into Financial Times Stock Exchange Global Equity Index Series Asia Pacific (ex-Japan Regional mid cap Index) in its semi-annual review.

Sui Northern gained to close on its upper circuit as its board approved Rs110.5 billion investment in developing 1,200 million metric cubic feet/day re-gasified liquefied natural gas pipeline from Sawan, Sindh to Qilla Sattar Shah near Lahore.

Analysts expected the market to continue its bullish trend and recommend investors to see any intraday dip as an opportunity to accumulate further positions. Companies, reflecting highest gains, included Rafhan Maize, up Rs120 to end at Rs7,700/share and Hinopak motor that rose Rs74.49 to close at Rs1,659.99/share.

Companies, with highest losses, included Wyeth Pakistan, down Rs180.5 to close Rs3,429.5/share and Phillip Morris Pakistan that fell Rs60.10 to end at Rs2,344.18/share.

Highest volumes were witnessed in Lotte Chemical with a turnover of 58.318 million shares.

The scrip inched up Re1 to close at Rs11.82/share. K-Electric was the second with a turnover of 29.359 million shares. It gained 34 paisas to end at Rs9.95/share. Aisha Steel was the third with a turnover of 20.627 million shares. It shed 56 paisas to finish at Rs24.04/share.