KARACHI: Stocks snapped three-session losing streak as the KSE-100 index recovered 339.79 points (0.98 per cent) and settled at 34,995.91. During the intraday trade, the index crossed 35,000-mark.
On the political front, slight thaw was noticed which encouraged investors to lap up value stocks available at discounted prices. Participants were also tempted to begin cherry-picking in an oversold market as whispers of early activation of market support fund made rounds.
Recovery in global crude prices and surging remittances data in May’19 played a catalyst’s role in bullish close.
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Trading kicked off on a positive note with the index making intraday high by 405 points. In late hours, it came under selling pressure when briefly dipped to intraday low by 10 points.
Exploration and production sector took cue from rising crude prices and were further helped by Iran’s taking down of US drone. Banks were also gainers while sector-wise, fertiliser companies led the charts with an addition of 69 points. Cement was strong on recent hike in prices per bag as main players Lucky and DG Khan showed upward price movement.
The volume witnessed growth of 64pc over the previous day to 163 million shares while traded value rose 32pc to Rs4.52 billion. Second-tier stocks including Summit Bank, WorldCall and JS and Co remained the most active stocks.
On the economic front, the current account deficit was above $1bn yet again; however, analysts said that FY20’s $6.5bn target looked achievable. “Nevertheless, exchange rate outlook remains contingent upon the quantum and timing of the foreign exchange inflows which are required for balance of payments support and financing of the fiscal deficit,” asserted JS Global in its report.
Stocks that contributed positively to the index included Fauji Fertiliser, increasing by 21 points, Engro Fertiliser 21 points, Engro Corporation 20 points, Pakistan Oilfields 20 points and Hub Power 19 points. On the other hand, Nestle Pakistan, lower by 14 points, Pakistan Tobacco 11 points, Nishat Chunian 3 points, Jubilee Life 2 points and Kot Addu Power 2 points.
Published in Dawn, June 21st, 2019