Banking sector leads rally

Pakistan Stock Exchange (PSX) Wednesday witnessed a bullish trend on the back of fresh buying, mainly in banking sector. The benchmark KSE-100 index rose by 302.01 points to close at 49,754.72 points. Trading activity also improved as daily trading volumes on the ready counter increased to 245.065 million shares as compared to 237.057 million shares traded Tuesday. The market capitalisation increased by Rs 65 billion to Rs 9.827 trillion. Out of total 398 active scrips, 217 closed in positive, 163 in negative and the value of 18 stocks remained unchanged.
Lotte Chemical was the volume leader with 28.332 million shares. However, the scrip lost Rs 0.49 to close at Rs 11.32 followed by Aisha Steel Mill that increased by Rs 0.95 to close at Rs 23.27 with 15.835 million shares. Sui Southern Gas Company surged by Rs 1.48 to close at Rs 45.21 with 15.152 million shares. Bata Pak and Nestle Pakistan were the top gainers with Rs 205.00 and Rs 200.00, respectively to close at Rs 4,305.00 and Rs 9,300.00. Wyeth Pak and Sanofi-Aventis were the top losers with Rs 147.01 and Rs 120.93, respectively to close at Rs 2,793.37 and Rs 2,297.80.
Nabeel Haroon at JS Global Capital said that bullish sentiment dominated most part of the day as the index gained around 302 points to close at 49,755 level. Banking sector led the gains in the market as index heavy weights MCB (up 0.78 percent) and UBL (up 0.47 percent) gained to close in the green zone. FFBL in the fertilizer sector gained to close on its upper circuit on the back of the news that DAP importers are currently in process of negotiating with the concerned ministry for upward revision in DAP prices by Rs 200/bag. ISL (up 4.07 percent), INIL (up 2.15 percent) and ASL (up 4.26 percent) in the steel sector gained as investors anticipate Lahore High Court to maintain the duty imposed on dumped imports of cold rolled coil and galvanised steel being imported from China. The major index movers were DAWH (up 2.77 percent), NESTLE (up 2.20 percent) and FFC (up 1.08 percent).
Ahsan Mehanti at Arif Habib Corporation said that stocks closed sharply higher led by oil, fertilizers and engineering sector on strong earnings outlook. He said upbeat data on DAP fertilizers sales, surging OMCs sales in MOGAS and HSD products and strengthening rupee likely to cut imports bills for industrial sector played a catalyst role in bullish close.