Stocks gain 2.73 percent on global oil prices

Stocks gained around three percent on Friday led by the energy sector after international oil prices jumped 9 percent on the previous day while the Prime Minister’s construction package also lent additional support, dealers said.

Brokerage Topline Securities in a market report said long-term investors continue to accumulate blue-chip shares at attractive levels, pushing the benchmark index in green zone for the fourth consecutive trading session of the week.

“Announcement of construction package and stark increase in oil prices following Saudi Arabia positive response to (US President Donald) Trump`s call for production cut kept the investor sentiment upbeat,” the brokerage said.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 2.73 percent or 839.12 points to close at 31,621.79 points level. KSE-30 shares index followed suit with a high of 3.45 percent or 467.87 points to end at 14,014.75 points level.

Benchmark index gained 3,512 points or 12.5 percent during the week-- highest weekly increase since 2000.

The rebound in market on account of value buying could be attributed to lower inflation reading for the month (10.2 percent year-on-year) in March, exemptions given to cement and export oriented sectors from lockdown and announcement of construction package to kick start the economy.

Improvement in investor confidence was observed as average daily traded volume and value increased by 52 percent and 73 percent to 228 million shares and Rs7.6 billion, respectively.

Foreigners continued to decrease their exposure from Pakistan equities, as they sold equities worth $27.42 million as of Thursday during the outgoing week.

Of 340 active scrips, 233 up, 91 retreated, and 16 remained unchanged. The ready market volumes stood at 251.874 million shares, as compared with the turnover of 311.585 million shares in the previous session.

Analyst Ahsan Mehanti from Arif Habib Corporations said bullish sentiments prevailed at the market amid high expectations from the quarterly earnings season.

“Moodys upbeat statement over the SBP (State Bank of Pakistan) measures on cut in key policy rate to cushion banks asset quality and lending business invited institutional interest played a catalytic role in bullish close,” Mehanti said.

Lucky Cement and DG Khan led the cement companies on the back of government decision to restart construction activity as well as offering and incentives package to the industry.

Buying from longer term players, including insurance sector helped the bulls stage a powerful comeback.

Ovais Ahsan, chief executive office at Optimus Capital Market said the market concluded a hefty weekly gain of 12 percent primarily driven by the oil exploration and cement sectors and OGDC and PPL led gains as global oil prices rallied over 20 percent overnight.

The top gainers were Phillip Morris Pakistan, up Rs103.95 close at Rs1,898.95/share, and Mari Petroleum Rs64.03 to finish at Rs1,085.98/share.

Rafhan Maize down Rs200.00 to close at Rs6700.00/share, and Wyeth Pakistan Limited Rs44.43 to close at Rs750.50/share, were the main losers.

Maple Leaf recorded the highest volumes with a turnover of 26.275 million shares. Whereas the scrip gained Rs1.36 end at Rs24.01/share.

The lowest volumes were witnessed in WorldCall Telecom recording a turnover of 7.410 million shares, whereas the scrip lost Rs0.01 to end at Rs0.74/share.