KARACHI: Stocks closed bullish on Friday led by cement, fertilizer and banking scrips ahead of major quarter end results due next week.
Bulls dominated the market to close at 32,351 levels, up 337 points. Positive run in the market was caused by the Engro up 0.9pc due to the news of 17pc GST on LNG and 5-year tax holiday approved by the ECC.
Rally was seen in the cement sector due to anticipation of further rate cut in the monetary policy. In banking sector, HBL and UBL spiked up 1.5pc and 2.5pc respectively after the overwhelming foreign response in the SPO. In IPPs, Kapco gains 3.4pc with volumes of 4.6m shares gained investors’ interest as the company plans to shift to LNG and become more efficient. In auto sector, PSMC escalated 0.9pc as the company showed 33pc MoM growth in the auto numbers, stated analyst Arhum Ghous.
Volume rose to 254m shares (Rs15b/ $147.6m) compared to yesterday volumes of 201m shares (Rs.11.7b/ $115.4m) changed hands.
Market rallied 1pc on news of record bidding of over $1b in HBL secondary public offering.
HBL deal garnered investor interest in other banks as well. ABL/ UBL/ MCB gained 3pc, 2pc, 3.5pc respectively at today’s close.
Cement stocks continued rallying after Kohat Cement’s (KOHC) better than expected result yesterday increased hopes of above consensus earnings for other cement players.
ACPL, DGKC, KOHC and LUCK gained 5pc, 2.6pc, 4pc and 1pc respectively. POL remained in the limelight during pre-result rally.
March quarter result announcements in coming weeks will retain investors’ interest in the market, commented Samar Iqbal VP at Topline brokerage. Record earnings announcement in cement sector, strong institutional and foreign interest in HBL in Govt. offer for sale on the last day led the bullish sentiments despite late session profit-taking in oil stocks on falling WTI crude oil prices, stated analyst Ahsan Mehanti.
In its weekly report JS Global said, the Karachi Stock Exchange (KSE) extended last week’s gains to close the week 3pc WoW higher at 32,351 with trading volumes averaging at 240m shares/day (-5pc WoW). Foreigners turned net sellers during the outgoing week, with net foreign selling of $6m vis-a-vis net buying of $4m the preceding week.
Heavy-weight Oil and Gas sector rallied led by discovery of hydrocarbon reserves in Mardankhel (Tal Block) and uptick in international oil prices, while Cements and Fertilizers stocks gained as the government once again delayed the gas tariff hike.
