Stocks sustain surge as energy goes north

Stocks sustained their surge on Friday as index-heavyweight energy sector cheered a crude oil rally, amid support from an extended investor interest in banking shares on big dividend bets, dealers said.

Pakistan Stock Exchange's (PSX) benchmark KSE-100 shares index gained 0.68 percent or 309.80 points to close at 45,654.34 points. Volumes increased to 696.434 million shares, from 641.437 million shares on Thursday. KSE-30 also hit a high of 0.61 percent or 115.53 points to end at 19,123.77 points level.

Topline Securities in its daily market review said, the market continued its momentum, where index heavyweight banking and E&P sector remained in the limelight. Major contribution to the index came from UBL, MCB, OGDC, BAHL, and HBL, as they cumulatively added 167 points to the index, the brokerage said.

Salman Ahmad, head of financial institutions at Aba Ali Habib Securities said, the market recorded healthy gains on back of global trends where most of the indices crossed the highest levels.

Rise in crude oil price to around $51/barrel helped boost local oil, gas exploration shares, he said.

“There has been a general consensus that key economic numbers have also helped consolidate gains at the market,” Ahmed added.

World stocks rallied, with Japan’s Nikkei hitting a three-decade peak, while US Treasuries extended their steepest sell-off in months on Friday as investors looked beyond rising coronavirus cases and political unrest in the United States to focus on hopes for an economic recovery later in the year.

On the other hand, world crude oil prices rose as participants widened their positions on firm spot demand.

Shahab Farooq, director research at Next Capital said banks in anticipation of the bumper dividends retained their rally.

Furthermore, E&P also joined the rally with higher international oil prices, Farooq added.

Of 416 active scrips, 222 advanced, 171 receded, and 23 stayed unchanged.

Yawar-Uz-Zaman, head of research of Pearl Securities, said the index extended gains on higher crude oil prices and better sales recorded by oil marketing companies.

“The market is likely to remain ‘positive’ in the coming week. Therefore, we recommend investors to take exposure in IPPs, IT, E&P, and Steels,” Zaman added. Ahsan Mehanti from Arif

Habib Corporation said stocks closed higher amid record trades led by oil and banking scrips on speculations ahead of financial results.

He said investor concerns over security unrest in the country weighed on sentiments.

Surging global crude oil prices, exports growth in December, 2.5 percent upside in projected

GDP growth for FY21 and bull-run in global equities were the key drivers on Friday, Mehanti added.

Nestle Pakistan, up Rs107.09 to close at Rs6,807.09/share, and Bhanero Textile, up Rs61.98 to finish at Rs893.99/share, were the major gainers.

Gatron Industries, down Rs44 to close at Rs546/share, and Mari Petroleum, losing Rs18.57 to close at Rs1389.77/share, ended up as the worst losers.

Byco Petroleum led volumes with 163.810 million shares. The scrip gained Rs0.6 to end at Rs10.41/share.

Azgard Nine saw the lowest trade with 15.172 million shares, losing Rs0.47 to end at Rs27.55/share.