Stocks stage dramatic 1,112-point rally

KARACHI: Bulls dominated the Pakistan Stock Exchange (PSX) on Thursday as the benchmark KSE-100 index staged a spectacular rally of 1,111.90 points or 2.57 per cent to close at 44,333.68 points.

According to Topline Securities, the stock market witnessed recovery as investors cheered the clarity over political noise after sideways opening. The statement by Minister for Information Chaudhry Fawad Hussain saying that the government and the military were on the same page calmed the sentiments. He added that the process for appointing the new director general of the ISI would be over soon.

On the corporate result front, Meezan Bank Ltd posted quarterly earnings per share of Rs4.30 along with dividend per share of Rs1.50.

Market participation increased 9.47pc to 388.59 million shares on a day-on-day basis.

Sectors contributing to the benchmark index included banking (233.3 points), cement (209.11 points), technology and communication (148.08 points), fertiliser (97.62 points), and oil and gas marketing companies (48.47 points).

Stocks that contributed significantly to the traded volume included WorldCall Telecom Ltd (66.16m shares), Unity Foods (25.02m shares), TeleCard Ltd (18.98m shares), Treet Corporation (16.45m shares) and Hascol Petroleum (16.01m shares).

Stocks that contributed positively to the index included Lucky Cement Ltd (87.52 points), TRG Pakistan Ltd (83.49 points), Habib Bank Ltd (73.56 points), United Bank Ltd (65.91 points) and Fauji Fertiliser Company Ltd (50.68 points).

Shares that contributed negatively included Highnoon Laboratories Ltd (7.01 points), Abbott Laboratories Pakistan Ltd (2.29 points), Ibrahim Fibres Ltd (1.85 points), Meezan Bank Ltd (1.36 points) and Millat Tractors Ltd (0.88 points).

Foreign investors were net sellers as they sold shares worth $3.95m.

JS Global said the index’s recovery was because investors cherry-picked attractive valuations across the board. Noting that healthy activity took place in blue-chip stocks, it advised investors to buy mainly top-of-the-shelf stocks on major dips.