KARACHI: After the year’s heaviest monthly fall in August, the market opened on Monday with the bulls in complete command. The KSE-100 index climbed to intraday high by 506 points but later retraced some of the gains to close up by 385 points (1.3 per cent) at 30,057. Stocks
Due to some technical ‘glitch’, the start of trading was delayed by 35 minutes, which was compensated by providing additional time of 15 minutes according to rules. Buying was seen across the board and mainly in exploration and production, banking, cement and steel sectors.
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The main reason behind the surge in index was attributed to resolution of a host of measures approved by the Securities and Exchange Commission of Pakistan over the weekend that helped investors take a positive view on equities. Besides, expectation of lower inflation reading going forward that hints at reduction in State Bank policy rate rekindled hopes.
Reports of divestment of big stocks Oil and Gas Development Company and Pakistan Petroleum that had dampened investors’ sentiments last week also subsided. E&P was the leading gainer with both OGDC and PPL closing higher.
But for all that, it was noticeable that the buying remained limited to “Individuals” who took fresh positions in stocks worth $1.6 million while institutional investors, foreigners and mutual funds did not show much enthusiasm.
The volume decreased 29.6pc from last Friday to 77.4m shares while the traded value plunged 34.7pc to $16.5m. Stocks that contributed significantly included Worldcall Telecom, Maple Leaf Cement, OGDC, K-Electric and TRG Pakistan, which formed 39pc of total volume.
Sector-wise, investor interest was witnessed in banking stocks where, Habib, United, National and Alfalah were the major gainers. Cement also turned strong with price gains in Pioneer, Maple Leaf, Fauji and DG Khan.
Scrips that helped the most in pushing the index higher included PPL, up 3.7pc, Bank Al Habib 3.2pc, Fauji Fertiliser 1.9pc, United Bank 1.9pc and Habib Bank 1.3pc.
Published in Dawn, September 3rd, 2019