our Staff Reporter
KARACHI
Stocks closed bullish led by oil, cement and textile scrips on global equities and commodities rally, the benchmark KSE-100 index on Friday posted a gain of 374 points and closed at 33,843.18 levels, up 1.12pc.
Oil companies headed for one of the best weekly performance as investors gained confidence after crude surge $50/bbl. After the overwhelming response in Amreli Steels book building process, Mughal hitting its upper circuit due to re-rating of steel sector P/E multiple as the strike price of Amreli Steels translate into a trailing earnings multiple of 15x. Cement sector remained strong today due to optimistic expectation in upcoming quarterly financial result as MLCF, FCCL and DGKC closed up 3.06pc, 2.66pc and 0.23pc respectively, stated analyst Arhum Ghous.
Volumes remained healthy today at 249m shares, with value Rs14b/ $133m.
Trade remained high amid speculations ahead of quarter end earning announcements due next week, observed Ahsan Mehanti. Investors’ interest in Leveraged stocks amid falling bond yields, surge in WTI crude prices above $50/barrel and hopes for SBP policy rate decisions next month played a catalyst role in the bullish close.
In its weekly report JS Global state, excitement returned into the market with elimination of sentimental concerns during the week, putting an end to continued dull activity which had plagued the market from Sept-15, Off late, KSE has continued to defy improvement in macros (IMF tranche, persistently low CPI readings, 50bps DR cut etc.) amidst rumors of NAB and SECP investigations against some brokers that later reverted with SECP's clarification on the subject.
Average trading volumes however remained thin to 175m during the week down 1.7pc WoW. Foreign investors also continue to remain net sellers with net outflow during the week clocking in at $19.3m.