Single digit inflation number for Dec11 at 9.75 per cent helped index post decent gains of 120 points amid broad based participation in the market. Month on month inflation in Dec fell by 0.7 per cent raising hopes for another round of monetary easing in the next monetary policy. Banking stocks led the advance with NBP and MCB hitting their respective upper circuit breakers over expectations of better payout in the forthcoming full year corporate announcements. Oil stocks witnessed mixed trend with OGDC remaining out of favour closing down 0.6 per cent, while both POL and PPL jumped 2.1 per cent and 1.5 per cent respectively over local institutional buying.
Moreover, PSO jumped 3.8 per cent over expected increase in motor gasoline demand due to increasing gas prices. Cement stocks witnessed renewed buying interest with DGKC hitting its upper limit, while LUCK gaining 3.8 per cent over sustainable cement prices over last four months and decreasing trend in international coal prices. In what seemed like forever, the New Year spirit finally descended upon the local bourse as the KSE-100 index surged 120 points to close at 11,402 points. Volumes, which have been a constant sore subject in recent times, were also on the up as 63 million shares were traded in today’s session. After being sidelined for months, LOTPTA made its presence known as it accounted for seven million shares and perched itself on top of the volume leaders board.
Fertiliser sector remained a hub of activity as the major players closed in positive territory in tandem with strong volumes. But it was the banking sector which surprisingly led the charge as MCB established an upper circuit and along with peers HBL and NBP accounted for 55 points towards the index gain. While the market performance today was indeed a welcome relief, the economic fundamentals at the moment do not give us much faith that this will remain a regular phenomenon, said Ali Hussain at HMFS.
KSE 30 index closed at 10378.23 levels with the gain of 183.03 points, while All Share index gained 80.04 points to close at 7895.18 levels. Total 155 scrips advanced 53 declined and 116 remain unchanged out of total 324 scrips traded.
Inflation drop behind 120 points market gain
