Stocks rise 1.9 percent on banking, fertiliser shares

Stocks rallied around two percent on Wednesday as investors bet on rupee stability after central bank withdrew restriction on import of dollars in cash against export of other foreign currencies to restore availability of dollars in the open market, dealers said.

Ahsan Mehanti at Arif Habib Corp said stocks closed bullish on renewed foreign interest and investor expectations regarding rupee stability after the State Bank of Pakistan’s regulatory meetings with exchange companies.

“Higher global equities, upbeat cement sales, surging global crude oil market, and revision in local auto prices led earnings season rally,” he added.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 1.91 percent or 816.41 points to close at 43,630.75 points.

KSE-30 shares index gained 2.05 percent or 442.95 points to close at 22,035.21 points.

As many as 400 scrips were active of which 316 advanced, 65 declined and 19 remained unchanged.

The ready market volumes stood at 327.761 million shares as compared with the turnover of 225.34 million shares a day earlier.

Major contribution to the index came from Habib Bank (up 2.46 percent), ENGRO (up 3.04 percent), United Bank, (up 2.27 percent), MCB (up 2.23 percent) and Lucky Cement (up 2.33 percent) and they cumulatively contributed 248 points to the index.

“Bullish sentiment was witnessed in the fertilizer sector, where Fauji Fertilizer Bin Qasim (up 2.93 percent and Fauji Fertilizer (up 1.92 percent) closed positive on the back of the news of proposal in reduction in GIDC (gas infrastructure development cess) that would materially benefit both the fertilizer makers,” Maaz Mullat at JS Global Capital said.

Investors' interest was seen in the engineering sector where International Steel and Amreeli Steel hit their respective upper price limit. E&P scrips rallied as oil prices closed at fresh three-year high.

Moving forward, analysts expect market to continue its positive trend, however prevailing political situation may shake investors' confidence for the short term.

Companies reflecting highest gains include Wyeth Pakistan up Rs83.63 to close at Rs1,756.35/share and Bata Pakistan up Rs70 to close at Rs2520/share.

Companies reflecting most losses include Shield Corporation down Rs24.91 to close at Rs475/share and Otsuka Pakistan down Rs13.04 to end at Rs286.46/share.

Highest volumes were witnessed in Aisha Steel Mill with a turnover of 16.9 million shares. The scrip gained Rs1.0 to close at Rs20.77/share.

TRG Pakistan was second with a turnover of 16.7 million shares. It gained Rs1.53 to close at Rs32.31/share. Dewan Cement was third with a turnover of 15.58 million shares. It gained Rs1.1 to finish at Rs23.10/share.