Stocks gain over two percent on blue-chips buying

Stocks surged more than two percent amid heavy trade on Thursday as investors took fresh positions in blue-chip shares on attractive prices, dealers said.  

The KSE 100-share index gained 2.02 percent or 824.62 points to close at 41,558.07 points. KSE 30-share index was up 1.78 percent or 369.96 points to end at 21,112.36 points.

As many as 384 shares were active; of which 301 increased, 70 decreased and 13 remained unchanged.

The ready market volumes stood at 232.172 million shares as compared to 138.115 million shares a day earlier. Analysts expect the newfound momentum would continue in the near-term with benchmark KSE 100 index likely retesting previous highs over 42,000 level.

Heavy weight Engro was up 4.55 percent, Pakistan Petroleum rose 2.74 percent, Habib Bank increased 1.68 percent and Pakistan State Oil surged 3.77 percent.

Analysts said there was a slight volatility during the day amid indictment of former prime minister by the accountability court. Elixir Securities, in a report, said activity in wider market saw a considerable surge. 

“Around $109 million worth of shares exchanged hands on KSE All Share Index, up 65 percent from this month’s average so far,” the brokerage added.  Cement sector remained on the investors’ radar with notable names, including DG Khan Cement (up 4.8 percent), Lucky Cement (rising 4.3 percent) and Maple Leaf Cements (increasing 4.34 percent) attracting decent flows, while fertiliser, oil and consumer plays also added to the day’s gains.

United Bank’s results were according to the market’s expectations, while earnings of Attock Petroleum beat the estimates on account of higher-than-expected inventory gains. Pakistan Oilfields announced results post-market close.

Companies, reflecting highest gains, included Nestle Pakistan up Rs570.37 to close at Rs12,570.37/share and Sanofi Aventis rising Rs73.37 to end at Rs1,553.37/share.

Companies, with most losses, included Pakistan Tobacco down Rs72.82 to end at Rs1,399.68/share and Sapphire Fiber falling Rs46.72 to close at Rs887.91/share.

Highest volumes were witnessed in K-Electric with a turnover of 29.665 million shares. The share shed one paisa to close at Rs6.09/share. Engro Polymer was the second with a turnover of 18.9 million shares. It gained Rs1.65 to end at Rs35.98/share. Dost Steels was the third with a turnover of 14.15 million shares. It gained Re1 to finish at Rs13.33/share.