Karachi: Stocks resumed the rally on the first trading session after the Eid holidays with the KSE-100 index adding 169.02 points (0.47 per cent) on Wednesday to close at 36,056.68.
Traded volume increased 3pc to 621 million shares while traded value rose 17pc to Rs16.5 billion over the last session. Foreign investors decided to book profit with sale of $4.75m worth stock.
Among local participants the rally was led by individuals who bought stocks valued at $4.75m, while almost all institutional investors reduced their portfolio. Interest was seen in banking scrips, Allied Bank gained 4.9pc, while Bank Alfalah and National Bank closed at their upper limits.
A fund manager stated that though banks were hurt by low interest rates, they benefitted from improved economic situation.
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Dealers at Topline Securities pointed out that in anticipation of better June 2015 results, investors took fresh positions in chemical stocks. As a result Arif Habib Corporation closed at its upper limit, while Fatima Fertiliser, Engro Corporation and Engro Fertiliser gained 4.6pc, 2.1pc and 1.3pc.
SSGC and SNGP rallied 4.8pc and 2.2pc, respectively, on news of likely increase in gas tariff.
The oil sector remained depressed following declining global oil prices. The cement stocks remained largely depressed as profit-taking was witnessed across the sector.
Analyst Ahsan Mehanti at Arif Habib Corp stated that the stocks closed at an all-time high led by banking and fertiliser scrips on speculations ahead of major earnings announcements due next week.
“Strong earnings outlook in fertiliser, cement and auto sector on record sales data, healthy earnings expectations in the banking sector amid higher banking spreads and gains on government bond played catalyst role in bullish activity at KSE”.
