KARACHI: A host of positive triggers kept fuelling the bull run for the fifth straight session on Thursday, propelling the KSE 100 index to its second-highest closing above 81,000.

According to Arif Habib Ltd, the benchmark index surged 997.95 points or 1.24 per cent to close at 81,459 points.

The index recorded its highest-ever settlement at 81,840 on July 18 in continuation of a record-setting spree triggered by the signing of a Staff-Level Agreement with the International Monetary Fund (IMF) for a 37-month $7bn new Extended Fund Facility on July 12.

Ahsan Mehanti of Arif Habib Corporation attributed the market’s surge to a $75 million current account surplus in August after four months and a global bull run in equities and oil prices as the US Federal Reserve delivered its first rate cut since 2020, indicating cooling of inflation.

He added that surging global crude oil prices and imminent approval of a new bailout by the IMF’s Executive Board on Sept 25 boosted investor sentiments, leading to a bullish close.

The index briefly crossed the 82,000 level with a 1,500-point addition in intraday trading before trimming some gains on profit-taking towards closing hours.

Topline Securities Ltd Chief Executive Moham­med Sohail said the stock market reached an all-time intraday high, breaching 82,000 points and delivering an impressive annual return of nearly 80pc, making it one of the top-performing markets globally.

“Slower-than-expected selling due to FTSE re­­balancing has encouraged local investors to accumulate shares,” he said, adding that falling bond yields — 1-year T-bills down to 15pc from a peak of 23pc last year — are shifting focus towards equities.

He observed that the recent rejection of all bids for the T-bill auction signals the government’s comfortable liquidity posi­tion, potentially paving the way for further cuts in the policy rate.

Fauji Fertiliser, Engro Fertiliser, Meezan Bank, MCB Bank, and Oil and Gas Development Com­pany largely drove this upward momentum, which collectively contributed 690 points to the index.

The trading volume rose 14.70pc to 459.03 million shares, while the traded value increased by 17.01pc to Rs18.61bn day-on-day.

Foreign investors remai­ned net sellers as they offloaded shares worth $4.56m.

Published in Dawn, September 20th, 2024