Stocks add to winning streak with banks in lead

Stocks barreled ahead on Thursday pushed by banks that grabbed limelight after strong earnings amid cheers over successful staff level talks with the IMF, traders said.

After gaining 321.94 points or 0.71 percent, KSE-100 Shares Index, the benchmark of Pakistan Stock Exchange (PSX), closed at 45,821.40 points. The index, however, explored a day high of 46,162.78 points and a low of 45,462.63 points.

Brokerage Topline Securities in a postmarket note said equities rallied today led by banking and oil and gas exploration and production (E&P) stocks in anticipation of aggressive monetary tightening and higher international oil prices.

A 40 basis points increase in cut-off yields in Wednesday's Pakistan Treasury Bills' auction lured investors into banking sector, lifting UBL, HBL, and BAHL by 5.06 percent, 2.76 percent, and 2.77 percent, respectively, adding 173 points, the brokerage said.

It added tracking the rising international oil prices MARI, OGDC, and PPL also contributed 80 points to the index.

Following the benchmark's suit, KSE30 Shares Index gained 181.61 points or 1.02 percent to close at 18,006.14 points.

Darson Securities in its market wrap said stocks extended previous session's gains paced by a rally in banking and fertiliser shares. The equity bazaar started with a spike and the index hit an intra-day high of 46,164.48 levels, the brokerage said.

Unfortunately, it added that the momentum could not be sustained as profit-taking trimmed some early gains after police in Lahore police were put on high alert as banned Tehreek-i-Labbaik Pakistan (TLP) resumed protest activities by staging a massive sit-in on Multan Road.

Volumes increased by 30 million shares to 338.31 million from 308.18 million shares, while trading value increased to Rs13.36 billion from Rs10.38 billion.

JS Research said benchmark index was so far on a winning streak this week, where it managed to cross 46,000 level in intraday today; however late profit-taking weighed.

Market capital rose to Rs7.897 trillion from Rs7.858 trillion. Out of 359 companies active in the session, 158 posted gains, 185 losses while 16 remained unchanged.

Arif Habib Corp's Ahsan Mehanti said stocks closed higher on reports of PakistanIMF staff level agreement over resumption of EFF (extended funding facility).