Energy scrips lead 653-point rally on PSX

KARACHI: The stock market turned in another impressive performance on Thursday, extending the rally that began a day earlier. The KSE-100 index showed a repeat opening in deep green and the benchmark continued to climb on the back of heavyweight exploration & production stocks.

Later in the day, as international oil prices took a dip, investors switched from oil stocks to cements shares. The KSE-100 index stormed past the 41,000 points as it settled at 41,031.03, recording a stellar gain of 653.49 (1.62 per cent).

Market strategists said that despite a slight slip of Dow Jones Industrial Average from its all-time high 30,046 a day ago, the global markets were bullishly inclined mainly as the investors pinned hopes on early arrival of Covid-19 vaccine that could mitigate any deterioration in global economies. Pakistan market followed suit.

The worries over the hike in Covid-19 cases that surpassed 3,000 for second straight day on Wednesday were somewhat diluted by the Prime Minister Imran Khan’s declaration that the government had decided not to shut down factories and businesses which could lead to far higher deaths from hunger. Rupee continued to remain steadfast against the dollar. The index sent souring to intra-day high of 750 points.

The leading factor that fuelled the bullish fire at the market was the buying by mutual funds in the staggering sum of $7.29 million. The mutual fund industry with Rs884 billion under management was sitting pretty on mountains of cash after recent spate of selling. Foreigners’ sold stocks valued at $4.06m. Banks, brokers and companies also booked profit.

Cement stocks were ripe for picking after heavy battering in the previous several sessions. The cement export showing growth of 12pc in October to $151m also helped infuse sentiments in the sector. Steel, textile, technology and power sectors also contributed to the index upsurge. Volumes increased 61pc over the previous day to 389.2m shares.

The major scrips that pushed the index up included Lucky Cement 38 points, TRG Pakistan 32 points, Pakistan Petroleum Ltd 32 points, Hub Power Company 32 points, and Maple Leaf Cement Factory 30 points.