KARACHI: Stocks closed higher on Wednesday as investors’ sentiments improved, luring them to cherry-picking.

The KSE-100 index gained 209.94 points (0.51 per cent) to settle at 41,259.16.

The market started the day on a lacklustre note as most investors seemed occupied by news flow on domestic politics. “The early hours saw benchmark index testing and respecting the 41,000 support,” said Elixir Securities.

Value buying helped the index to recover from the poor start and the index later made an intraday high of 244 points.

Despite thin turnover, the benchmark index closed near its intraday high and did not succumb to the usual day-end profit-taking spree.

Mutual funds were net sellers of $1.73 million worth stocks, which was absorbed by foreign investors’ purchases of shares valued at $1.53m. The volume receded 9pc over the previous day to 97m shares. Activity by retail investors saw mid-tier scrips dominate volume leaders list. The traded value rose 3pc to Rs5.65bn.

Major contribution to the index upside came from Lucky Cement, which gained 2.84pc, SNGP 3.08pc, ISL 4.69pc, DAWH 1.88pc, MTL 2.40pc and The Searle 3.76pc, adding 120 points.

OGDC lost 2.06pc, PPL 1.16pc, Packages 2.22pc and Kohinoor Textile 4.69pc, scrapping 85 points.

Steel stocks were in demand with ASTL and CSAP hitting their upper circuits and ISL adding 4.69pc.

Exploration and production companies slumped as oil price rise came to a halt after rallying sharply ealyr this week, with POL up 0.24pc.

PPL and OGDC down 1.16pc and 2.06pc, respectively on profit-taking.

Dealers at JS Global said that a rally was witnessed in the cement sector as DGKC up 1.49pc and FCCL 1.30pc closed positively.

Auto sector continued its positive trend where Honda Car gained 2.39pc, PSMC 3.15pc and Sazgar Engneering 4.29pc on the back of expectations of improving sales numbers for October.

Published in Dawn, November 9th, 2017