Stock market scales new peak

KARACHI -  Led by second and third tier scrips, Pakistan Stock Exchange witnessed another bullish session Wednesday on strong earnings outlook. The KSE 100-index surged by 129.49 points (0.31%) to close at fresh all-time high level of 41,253.46 points.

Positivity prevailed as the index continued its positive trajectory into previously unknown levels, brokers said. Despite global crude oil prices climbing to a three-month high after weekly industry data indicated that US crude stockpiles plunged last week easing the global glut, profit taking was witnessed in the oil sector yesterday. Top index movers of the aforementioned sector were PPL (down 2.73%) and OGDC (0.08%). Similarly profit-taking was witnessed in the cement sector as global coal prices hit 30-month high, where MLCF (down 0.59%) and FCCL (1.74%) were the biggest laggards of the sector.

On the other hand, rally was witnessed in tractors manufacturers stocks on the back of reduced GST on tractors along with steps taken by government to improve the agronomics of the country and anticipation of better than previous sales numbers for the month of Sept-16. Resultantly, MTL and AGTL both closed up. Rising trend of inflation and improving global crude oil prices kept investor interest in the banking sector. Furthermore, speculations of interest rate hike in upcoming monetary policy gained momentum as MCB (up 0.85%) and NBP (1.06%) were the biggest index movers, stated analyst Ahmed Saeed Khan.

Volumes increased by 17.5% to 657m shares while value increased by 4% to Rs18.0b/ $173m. BOP and LOTCHEM led the volumes with 83m shares traded.

Autos and textile stocks outperformed the index on falling yen and rising cotton prices. Higher global crude oil prices, subdued noise over LoC aggression and speculation on positive outcome CPEC projects in the banking, steel and cement sectors played a catalyst role ahead of quarter end earning announcements at PSX, said analyst Ahsan Mehanti.

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