Stocks up 1.27 percent in earnings-led rally

Stocks ended up 1.27 percent in earnings-led rally on Friday as investors moved to grasp the key shares at attractive valuations, dealers said.

Analyst Ahsan Mehanti at Arif Habib Corp said stocks closed higher amid thick trades after strong financial results in oil, cement and banking sectors. “Institutional interest was witnessed on reports of rising local cement prices, speculations on likely stocks market package and higher global crude prices,” Mehanti added.

The KSE 100-share index of Pakistan Stock Exchange gained 1.27 percent or 529.82 points to close at 42,087.89 points. KSE 30-share index rose 1.44 percent or 304.33 points to end at 21,416.69 points. As many as 386 shared were active; of which 270 increased, 99 decreased and 17 remained unchanged.

The ready market volume stood at 261.229 million shares as compared to 232.172 million shares a day earlier. Elixir Securities, in a report, said equities activity in wider market remained upbeat as some clarity on legal issues faced by former prime minister and expectations of a relief package for the market helped in rebuilding investors’ confidence.

Morning session saw somewhat limited activity and range-bound trading where most volumes went through in small- and mid-cap plays.  “However, from the onset of afternoon session KSE 100 index saw a sharp climb helped by gains in blue-chips across the major sectors on reported local buying,” the brokerage said. 

Habib Bank was up 1.3 percent despite posting losses in its result, which was largely in line with the market expectations after fine on bank’s New York branch by a US regulator. Analysts see the market inching up next week with sectors and stocks tracking institutional flows and earnings announcements. But, investors will remain sensitive to foreigners’ trading as any large outflow at highs from them could halt current momentum, they said.

Companies, reflecting highest gains, included Colgate Palmolive up Rs75 to close at Rs2,225/share and Sanofi Aventis that rose Rs70.44 to end at Rs1,623.81/share.

Companies, with most losses, included Nestle Pakistan down Rs145.37 to end at Rs12,425/share and Sapphire Fiber that fell Rs44.39 to close at Rs843.52/share.

Highest volumes were witnessed in Engro Polymer with a turnover of 20.715 million shares. Its share value gained Rs1.01 to end at Rs36.99/share.

Azgard nine was the second with a turnover of 17.64 million shares. Its stock price rose Re1 to close at Rs13.83/share. TRG Pakistan was the third with a turnover of 15.9 million shares. It was up Rs1.67 to finish at Rs36.39/share.