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Stocks regain momentum; index rises 230 points

KARACHI: Following a few lacklustre sessions, stocks staged a decent recovery on Tuesday with the KSE-100 index rallying 230.74 points, or 0.49 per cent, to close at 46,920.47.

Gains were largely underpinned by an upside movement in oil marketing, fertiliser and cement companies.

Overall, volumes rose 10.5pc from the previous day to 199 million shares while the trading value escalated 22.2pc to Rs11 billion.

Habib Bank, Hascol Petroleum, Lucky Cement and The Searle Company cumulatively added 117 points to the gains.

“Positive sentiments prevailed in oil marketing companies as investors took fresh bets, which lifted Hascol to its upper price limit of 5pc while Sui Northern Gas Pipelines (SNGP) and PSO gained 4.6pc and 1.3pc, respectively,” said dealers at Topline Securities.

Analyst Nabeel Haroon at JS Global observed that a nominal increase was witnessed in the exploration and production sector as crude oil prices traded comfortably above $53 per barrel.

According to Global Securities dealer Abra Juma, the market started off strong and continued to move upwards, settling at 46,920 points, just shy of the 47,000-point barrier.

The cement sector performed well with almost all stocks closing in the green in anticipation of healthy dispatches recorded in December.

Another major brokerage house noted that multi-utilities, power and some pharmaceuticals, banks and steel companies also contributed to the upside in Tuesday’s session. Profit-taking was witnessed in the auto sector. Cements were in the limelight with DG Khan Cement going up 1.53pc, Lucky Cement 0.85pc, Kohat Cement 2.94pc, Maple Leaf Cement 1.05pc and Fauji Cement 0.48pc.

SNGP staged a reversal amidst a strong performance. Positivity prevailed among fertilisers in view of the expected healthy off-take in December.

courtesy : dawn news

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