Bulls dominated the share market Wednesday with the KSE-100 index surging 1.25 percent because of what analysts said investors'' optimism for strong corporate earnings. The benchmark index rose by 422 points to close at five-month high of 34,269 points compared with 33,848 points Tuesday, which proved to be the intraday low on the bullish day.
Trading turnover slightly fell to 257 million shares, the price of which appreciated to Rs 12.5 billion. Of the 379 scrips traded, 231 posted gains, 129 lost their worth and that of 19 stayed unchanged. The listed capital accumulated to Rs 7.11 trillion as foreign portfolio investment remained in the red zone to mark a net selling of $3.37 million.
"Stocks closed bullish led by bluechips across the board on strong earnings outlook," viewed analyst Ahsan Mehanti, a director at Arif Habib Corp. Nepra approval of reduction in power tariff bode well for auto, textile and cement stocks, he said. "Institutional buying after a surge in crude oil prices and speculations in earning announcements at PSX played a catalytic role in the bullish close ignoring rising political noise, foreign outflows and weak global equities," he added.
Analysts at Topline Research observed result-based activity and a rally in commodity prices which prompted the trading activity. "The benchmark KSE-100 index gained 421 points... reaching five-month high of 34,269 level," they noted. SNGPL, which rose to Rs 33.55 at close, led volumes with 27 million shares. Others followed included Dewan Motors, TRG Pakistan, Descon Chemical, SSGC, Byco Petroleum, Telecard Limited, JSCL, Dewan Cement and OGDCL.
"Increase in international crude oil prices to $45/barrel resulted in activity in oil exploration stocks," analysts said. Resultantly, Oil and Gas Development Company and Pakistan Oilfields rose 4.8 and 4.0 percent, respectively. In anticipation of asset-based return on Re-Gassified Liquefied Natural Gas, Sui Southern Gas Company closed at its upper limit.
Textile sector stocks were in the limelight today on the back of increasing cotton prices and good results in the outgoing quarter. Nishat Mills, Nishat Chunian and Gul Ahmed Textile Mills also closed at their upper limits. Futures trade slid to 83 million contracts from 86 million of last session.
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