Bullish trend continues at PSX, index gains 704 pts

KARACHI -  Stocks continued its bull-run on second consecutive session as the PSX benchmark index posted its best single day gain of 704 points or (1.44%) since November 1, 2016 amid rumors that a new leverage product will be launched soon and to close at 49,696 points.

Positivity in the market can be attributed to SECP's assurances that in-house financing position of brokerage houses is no longer a matter of concern and they are taking all the necessary regulatory measures to protect investors' interest, brokers said. Banking sector led the rally as CPI number for February 2017 clocked in at 4.22 percent YoY versus 3.66 percent YoY in January-2017. HBL (rose 3.08%), MCB (1.58%) and UBL (1.43%) were major index movers from the banking sector. Apart from HBL (which was included in mid cap index), MARI, SEARL, EFERT, FCCL, and NML gained on the positive news of inclusion in FTSE Global Equity Index Series Asia Pacific (ex-Japan Regional mid cap Index) in its Semi-Annual Review, market participants said. Meanwhile, SNGPL gained to close on its upper circuit on material information disseminated via PSX notification that board of directors of the company in their meeting held on March 1, 2017 have approved capital intensive project of worth Rs110.5 billion to develop 1,200 MMCFD capacity RLNG transportation pipeline from Sawan, Sindh to Qilla Sattar Shah (near Lahore), stated analyst at JS Global.

Concerns for dismal exports and falling global crude prices invited mid-session pressure. The finance minster assurance over populist federal budget 2017-18 played a catalyst role in bullish close, dealers said. Overall, volumes surged by 70 percent to 398 million shares, while value rose by 22 percent to Rs17.7 billion/$169 million. LOTCHEM (rose 9.24%) was today's volume leader with more than 58 million shares traded.

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