KARACHI, May 14: Stocks carried on relentless rally at the stock market on Tuesday, extending further gains in share prices.

Mainly on the back of heavy-weight banking and energy stocks, the KSE-100 index jumped 229.80 points or 1.14 per cent to close at 20,474.62 points.

The market has been in bullish frame of mind post elections as investors are expecting business-friendly government policies. The foreigners continued to buy due to reduced political uncertainty after the elections and the comfort of a single party majority government.

With the new government expected to approach the IMF, the banking sector rallied with expectations of interest rate going up. Banking stocks were investors’ favourites on Tuesday with MCB Bank, NBP, UBL all ending close to their ‘upper circuit’ and gains seen in several second and third tier banking stocks.

On Tuesday, foreigners were again in the forefront of the rally with net inflow of $6.65 million. Among local participants, ‘companies’ also bought stocks worth $3.78m. ‘Organisations’ also were net buyers of $0.57.

Other local participants continued profit taking at high levels. Banks sold $6.81m worth stocks followed by mutual funds $2.74m and ‘individuals’ offloading shares valued at $1.46 million.

Analyst Zeeshan Afzal at Topline Securities calculated that in the last eight trading days, the index has gained 6.7% (1,264 points) taking the year to date gain to 20pc or 3,339 points.

Strong foreign inflows (net foreign buy at $208m 2013YTD), transfer of funds from low yielding fixed income to equity market and comfortable win by PML-N in elections has caused the rally. In the above rally, MCB Bank has contributed 525 points.

On Tuesday, MCB Bank hit ‘upper circuit’ for the fourth day in a row, adding around Rs45 to its stock price which closed at Rs274.99.

OGDC, the stock with the highest weightage of 12.4 per cent in the index has contributed 280 points in eight sessions.

Ahsan Mehanti at Arif Habib Corp stated that stocks closed at all-time high led by oil and banking stocks after PML (N) chief pledged to boost Pak-US and Pak-India relations.

Renewed foreign interest, hopes for early resolution of circular debt crises in energy sector, settlement of gas supply issues to fertiliser and textile sectors on new political commitments played a catalyst role to show record close at KSE despite concerns for political protests in the country.

In all 379 stocks came up for trading on Tuesday, with losers at 196 leading gainers at 164, which evidenced bigger contribution by top-tier stocks.

Turnover on Tuesday stood at 300 million shares, higher than 280m shares traded the previous day, while trading value declined to Rs9.758 billion, from Rs9.806bn. Market capitalisation was up by Rs46bn to Rs5 trillion, from Rs4.955tr.

On the 10-top active list, Bank of Punjab posted gain of Re1, hitting its ‘upper circuit’ to Rs11.31 on 24m shares. It was followed by BankIslami Pakistan up by 58 paisa to Rs6.79 on 20m shares, PTCL rose by 89 paisa to Rs19.75 on 19m shares, Fauji Cement declined by 18 paisa to Rs10.40 on turnover at 18m shares, Jah Sidd Co was up by 35 paisa to Rs12.28 on 15m shares, National Bank of Pakistan jumped by Rs1.97 to Rs43.22 on 14m shares, Maple Leaf Cement rose 30 paisa to Rs19.42 on 12m shares, D.G. Khan Cement slipped by Rs1.10 to Rs73.86 on 11m shares, Pakgen Power saw token gain of one paisa to Rs19.54 on 10m shares and TRG Pakistan was up by 30 paisa to Rs9.51 on 8m shares.