Karachi

Bulls dominated the shares market on Friday and the benchmark KSE 100-index closed at 32,929 points after gaining 346.41 points or 1.05 per cent.

The bourse recovery was led by UBL, MCB and HUBC, as these 3 stocks contributed 23% to Friday’s rise. ENGRO, with volume of 6m shares (Rs1.8b/USD18m), gained 1% after minister for petroleum and natural resources said that an agreement had been signed with Qatar to import LNG. Cement stocks also improved as investors are now expecting better results for the current quarter also thanks to lower coal and power cost. Drug companies also rallied on speculation that drug pricing policy has been approved, said analyst Samar Iqbal.

Volumes remained below average ahead of the weekend as 157m shares valuing Rs9.8b/US$98m were traded at the local bourse. Cement sector was led by MLCF which reached its upper circuit on the back of anticipated cut in the discount rate in the upcoming monetary policy. Oil sector closed in the green zone due to slight recovery in global oil prices. Pharma sector witnessed euphoria after Sindh High Court suspended freeze on prices from Oct 2013 to Jul 2016 of new Drug Policy which led GLAXO, SEARL, HINOON, OTSU and FEROZ to reach their upper circuits. In auto sector, PSMC and INDU spiked up by 2.2% and 2.9% respectively due to deprecation of yen benefiting the gross margins, observed analyst Arhum Ghous. Stocks closed bullish led by scrips across the board on hopes for early resolution of broker concerns on SECP regulations. Bullish global stocks, strong earnings expectations in auto, cement, and fertilizer sectors and hopes for govt review over OGRA approved new gas prices denting industrial sector earnings outlook, commented analyst Ahsan Mehanti.

Weekend report of JS Global states, after a depressing start to the week, market partly recovered losses on Friday up 346 points to close the week at 32,929 with 1.0% WoW decline. Market participants gained some confidence over suggestions that SECP and brokers have come to a mutual understanding over recent inquiries conducted by the regulator into insider trading.

Moreover, positive news flows like the construction of Karachi-Hyderabad motorway and Sindh High Court suspending price freeze for pharmaceutical firms further strengthened market sentiments. However, foreigners remained net sellers during the outgoing week with net selling of US$28mn, while average trading volumes remained low at 142m shares/day 18% WoW dip.