Stocks pierce through 40,000 barrier KARACHI: Stocks have rebounded with a vengeance in the last two days, once again crossing the 40,000 barrier. The Wednesday’s rally amounted to 396 points, or one per cent, and the KSE-100 index closed at 40,085 points.
With larger participation of investors across the board, the volume rose to 498 million shares on Wednesday from 330m shares a day ago. Pace Pakistan, TRG Pakistan and Japan Power Generation accounted for a combined turnover of 131m shares. Traded value rose to Rs17.7 billion from Rs14.1bn.
Top three contributors to the rally were MCB Bank which rose 2.3pc, Hub Power Company 1.52pc and Engro Corporation 1.88pc. Cumulatively, they added 96 points to the index.
Banks were again the leaders. Besides MCB Bank, other major gainers of the sector were the National Bank of Pakistan 0.96pc and Bank Al Habib 1.14pc.
Cement stocks also extended gains, with DG Khan Cement going up by 0.57pc, Lucky Cement 1.04pc, Cherat Cement 3.99pc, Pioneer Cement 3.43pc and Fauji Cement 0.90pc, said analysts at Intermarket Securities. Market participants said investor interest in cement stocks was sparked by a year-on-year increase of nearly 17pc in August sales.
Fertiliser stocks also closed firm, with Engro Corporation rising 1.88pc, Fauji Fertiliser 0.46pc and Fauji Fertiliser Bin Qasim increasing 0.13pc.
The automobile sector also continued to garner investor interest. Top performers were Pak Suzuki 2.87pc and Indus Motor Company 0.45pc.
In the exploration and production sector, the Oil and Gas Development Company was up 1.28pc and Pakistan Oilfields gained 0.46pc as crude oil prices surged to $45 a barrel, said analyst Nabeel Haroon at JS Global.