Relaxed political front and increase in fertiliser prices by local manufactures allowed the fertiliser sector to lead the bull-run that was well supported by the Oil and Gas exploration and marketing stocks, thus allowing the benchmark triple digit gains on opening. Despite red numbers in international and regional equities and commodities, renewal of commitment by the authorities of resolving the ballooned circular debt did force the likely sellers on back foot, high priced stocks however continued to face sell-off on gains.
The KSE 100 index closed at 11868.88 levels with the gain of 307.21 points, while KSE 30 index bagged 348.31 points to close at 11243.40 levels. All Share index closed at 8215.84 levels after gaining 204.20 points. Total 165 scrips advanced 83 declined and 85 remain unchanged out of total 333 scrips traded.
The bull run initiated by cash rich local institutions did inspire gains in various frontline stocks, including those having infrastructural and supply threats hovering; thus questioning the future earnings of the companies under threat. While the popular rumour in the arena regarding CGT allowed every Tom Dick and Harry from the front line mid tier and low priced category to stage robust activity, the turnover failed to match gains.
‘Indeed, the rumour regarding relaxation in CGT did support the run-up mainly as the deadline for CGT review as committed by FBR is getting closer (that allowed the local syndicate to set a stage for the sideliners awaiting turnover and follow-up to the bull-run), gloomy economic and financial situation will however keep the trading horizon restricted, caution therefore stays the call,’ said Hasnain Asghar Ali at Aziz Fidahusein.
‘Although, incorporation of proposed change in CGT mechanism by making CGT collection presumptive will certainly allow even the high priced stocks to gain values, rumour based activity in stocks struggling to find sustainable multiples need to be avoided along with those facing tough time due to gas curtailments and high debt portfolio,’ he added.
