Stocks extend court-fuelled rally; index gains two percent

Stocks climbed on Thursday, with blue-chip shares leading broad gains, building on strength from a day earlier that was fueled by the Supreme Court’s decision on Panama corruption case while corporate earnings also supported the best run of the year, dealers said.

They added that the investors continued with the celebrations with index surging 1.98 percent as Supreme Court’s decision averted immediate threat for the ruling Pakistan Muslim League (PML-N), while robust corporate earnings further boosted market sentiments.

Analyst Ahsan Mehanti at Arif Habib Limited said bullish activity continued at the bourse as investors cheered easing political noise after a Supreme Court’s ruling on Panamagate case. “Upbeat financial results in cement, banking and energy sectors played a catalytic role in bullish close in the quarter-end corporate earnings season.”

The KSE 100-share Index of Pakistan Stock Exchange gained 1.98 percent or 965.09 points to close at 49,708.65 points. KSE 30-share Index was up 2.04 percent or 527.69 points to end at 26,453.93 points. As many as 410 shares were active; of which 321 increased, 76 decreased and 13 remained unchanged.

The ready market volumes stood at 395.824 million shares as compared to 408.163 million shares a day earlier.

An analyst at Elixir Securities said earnings growth and attractive valuations drove the market with investors optimistic on long-term economic health under China-Pakistan Economic Corridor projects and PSX’s upgrade to Morgan Stanley Capital International Emerging Markets Index

The market witnessed an across-the-board bullish rally with 78 percent of the traded shares having closed positive.

“Hefty buying can be attributed to the long-awaited verdict of the Supreme Court on a high profile political case,” said Nabeel Haroon, an analyst at JS Global.

Auto assemblers were the star performers. Pak Suzuki hit its upper price circuit, Honda Cars surged 3.46 percent, Indus Motors gained 2.2 percent and Hino Pak Motors increased 1.9 percent.  

Kot Addu Power announced earnings per share (EPS) of Rs2.94 for its quarterly results. The share surged 1.37 percent. NBP surged 1.71 percent after announcing EPS of Rs1.98, pretty much in line with the market expectations. OGDC closed 0.62 percent up after posting a 9.3 percent surge in its earnings for the nine-month period. 

Companies, reflecting highest gains, included Wyeth Pakistan, up Rs118.48 to end at Rs2,488.23/share and Sanofi Aventis that rose Rs95.03 to close at Rs2,087.03/share.

Companies, with highest losses, included Nestle Pakistan, down Rs251 to close at Rs9,200/share and Rafhan Maize that fell Rs125 to end at Rs7,000/share.

Highest volumes were witnessed in Engro Polymer with a turnover of 37.657 million shares.

The share was up Rs1.3 to end at Rs8.18/share. TRG Pakistan was the second with a turnover of 32.435 million shares. It increased Rs2.64 to close at Rs55.47/share. Azgard Nine was the third with a turnover of 18.124 million shares. It was up Re1 to finish at Rs13.13/share.