KARACHI: The stock market staged a grand rally on Tuesday as the KSE-100 index stormed past the 41,000-level to settle at 41,238.07, with gains of 717.60 points (1.77 per cent).
The market took a muted start with investors spooked over the announcement of mini-budget later in the day. It extended the previous day’s heavy losses triggered by the increase in gas prices, which was supposed to hit mainly the steel, cement and chemical sectors.
But post announcement of budgetary measures, investors were relieved of many fears, particularly the much feared cut in Public Sector Development Programme which was thought to have negative repercussions on the cement and steel sector and around 42 ancillary industries.
Some relief measures announced for the export-oriented industry boosted investors’ sentiments and propelled the index to intraday high by 750 points.
The volume improved 15pc over the previous day to 166 million shares while the traded value also increased by 38pc to reach Rs7.54 billion. Lotte Chemical, Unity Foods, Maple Leaf Cement, Descon Oxychem Ltd and TRG Pakistan accounted for 27pc of the total volume.
Withdrawal of restrictions on non-tax filers to purchase new motor vehicles attracted bulls to the automobile sector with Honda Atlas Cars and Pak Suzuki Motors closing at their respective upper circuits.
According to Arif Habib Ltd, sectors contributing to the bullish performance included cement, higher by 137 points, fertiliser 114 points, banks 99 points, exploration and production 63 points and oil and gas marketing companies 57 points.
Investors flocked to take entry into cement stocks. Fresh positions were taken in textile scrips as it emerged as the major beneficiary of the mini-budget since incentives were announced for export-oriented industries.
Scrip-wise, major gainers were Lucky Cement, up 4.95pc, Engro Corporation 3.03pc, Pakistan Petroleum 1.80pc, Engro Fertilisers 3.63pc and Habib Bank 1.55pc, adding 231 points.
Published in Dawn, September 19th, 2018