Stocks rally on circular debt settlement reports

Normali­sation of diplomatic ties with Iran and reports about the government’s plan to settle down circular debt revived investors’ interest in the energy sector helping the benchmark KSE 100 share index to close the session near 64,000 on Monday. Topline Securities said the index commenced the week on a positive note as significant buying momentum was seen during the latter half of the trading session after reports circulated on different media channels regarding the finance ministry’s plan to issue Rs1.25 trillion to settle energy sector circular debt. The brokerage attributed the rally to the rejuvenated buying interest in energy stocks with both Oil and Gas Development Company Ltd and Pakistan Petroleum Ltd hitting their upper limit for the day. In addition, Bank Alhabib Ltd also hit the upper circuit after it announced a board meeting on Jan 31 in anticipation of better financial results along with a good dividend.