Supported by positives on the local and foreign fronts, equities Friday ended 216 points or 0.63 percent higher under the lead of banking sector. Showing volatility in intraday trade, the benchmark KSE-100 index ended at 34,719 compared to 34,504 of last session. "(The prevailing) positivity in today''s session can be attributed to a rally in banking sector," viewed Arhum Ghous of JS Research.
The sector, analyst said, continued its upward trajectory on the back of better than expected 1QFY16 results. HBL and MCB hit their upper circuits at close. Ahsan Mehanti at Arif Habib Corp said the bull-run in the earning season was led by oil, fertilisers and banking scrips on strong financial results and surge in WTI crude prices above $46 a barrel.
Rebounding crude prices helped OGDC, POL and PPL add 0.98, 1.23 and 0.34 percent to their value. PSO, however, lost 1.79 percent and came under selling pressure. The state-run oil marketing firm declared a loss of Rs 7.85 per share in its 3QFY16 result against the market expectations of Rs 3.18 per share earnings. "Pakistan Development Update issued by the World Bank affirmed economic stability and progress inviting fresh institutional interest in banking stocks amid speculations in earning announcements session close," he added.
Foreign investors kept offloading their positions with Friday seeing net outflows of $1.34 million. Overall, the investors traded 255 million shares the value of which depleted to Rs 13.33 billion from the previous Rs 14.54 billion. Of the total 364 scrips traded, 153 rose, 197 slid and that of 14 remained unchanged. The market capital grew to Rs 7.205 trillion compared to Thursday''s Rs 7.163 trillion.
Bank of Punjab, ending up at Rs 9.21, led volumes with 20 million shares. Other most-traded issues were SNGPL, Pak Elektron, Fauji Fertilizer Bin Qasim, Bank Al-Falah, Dewan Motors, TRG Pakistan, Fatima fertilizer, Byco Petroleum and Faysal Bank. FFBL, up by 4.43 percent, rose on the back of the company''s announcement to have invested in Noon Pakistan following approval in its Annual General Meeting held on 8th March. Futures trade increased to 90 million contracts from 77 million. "Moving forward, we expect the market to continue its bullish momentum on the back of investor''s anticipation that Pakistan will make it to MSCI Emerging Markets Index," said Arhum.