KARACHI: The stock market took a turn for the better on Monday with the KSE 100 index adding 157.49 points (0.37 per cent) to close at 42,745.78.

The upturn surprised most of the market participants in the absence of any encouraging news on the macroeconomic front especially when the country’s current account deficit (CAD) ballooned to $2.2 billion during the first month (July) of this fiscal year.

Investors, desperate for triggers, may have taken heart from the recent foreign exchange reserves figure, which rose by $82 million over the preceding week. On the political front, risk of opposition-nominated president being elected to power was thought to have subsided, which encouraged buyers to cherry-pick stocks at attractive levels.

The index rose to intra-day high by 283 points, however, profit taking in the last half hour trimmed these gains by almost 50pc. Sectors contributing to today’s positive performance included banks at 56 points, exploration and production 33 points, fertiliser 21 points, autos 14 points, and refinery 12 points.

Scrip-wise, major contribution to the index upside came from Dawood Hercules which was up 2.96pc, followed by Bank Alfalah rising 3.48pc, National Bank 3.13pc, Pakistan Petroleum 0.79pc and Lucky Cement at 0.99pc cumulatively contributing 98 points. On the flip side, Fauji Fertiliser was down 0.79pc and Packages 3.35pc, taking away 21 points.

The volume increased from 49.1m shares to 106.9m shares (up 117pc day-on-day), which was attributed to start of roll-over week for futures contract.

Earnings reports from Fauji Cement, Faysal Bank, Packages Ltd failed to help index performance despite the results being in line with market expectations.

Published in Dawn, August 28th, 2018