KARACHI: The post-budget rally continued for the second day on Tuesday with the KSE-100 index adding 119.17 points (0.35 per cent) to close at 34,270.28.

Bulls took the market to intra-day high of 346 points, but it was later retreated.

Sideboard stocks remained in the limelight as the volume, though lower than Monday’s, stood high at 404 million shares of Rs18.1 billion value.

Foreign investors bought stocks worth $4.79m, with major inflow of $6.6m in the food sector and outflow of $3.3m from the cements. Banks offloaded shares valued at $5.37m.

Cement sector was in the spotlight with trading seen in over 80m shares, followed by fertilisers 62m shares and technology 52m shares.

“Attractive valuation of banks tempted investors to take fresh positions that have declined in the last few sessions. HBL, UBL, BAFL and BAHL gained 2.4pc, 1.8pc, 1.4pc and 1.3pc, respectively,” dealers at Topline Securities said.

Fertiliser stocks witnessed renewed interest as FFBL, EFERT and FFC rose by 5pc, 1.7pc and 1.3pc, respectively.

Analyst Ahsan Mehanti at Arif Habib Corp stated that the stocks closed bullish led by second- and third-tier scrips on strong earnings outlook.

Trade remained high in the post-budget session amid recovery in oversold banking stocks impacted by super tax and uniform tax.

Expectations for higher dividend payouts in selected blue chip oil, cement and auto stocks played a catalyst role in bullish activity.

Market participants pointed out that the MSCI would soon announce the results of ‘Annual Market Classification Review’.

“Start of any consultation process for the potential upgrade of Pakistan from frontier to emerging market can be a trigger for the local market,” said a major player.

Published in Dawn, June 10th, 2015

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