KARACHI: After losing a staggering 10.6 per cent month-to-date, the stock market staged a snap rally on Wednesday as investors were enticed to a highly oversold market. The bulls tossed the KSE-100 index to 37,647.34 points, raking in gains of 983.96 points (2.68pc).

Investor sentiments received a boost from the overnight remarks of Finance Minister Asad Umar that the first tranche of International Monetary Fund loan may be received in two months, possibly accompanied by around $5 billion from the World Bank and the Asian Development Bank for balance of payments support during FY19.

Moreover, the Federal Board of Revenue increased regulatory duty by 5-10pc on import of 570 luxury items. Analysts also attributed the market upturn to a relief rally across all global indices.

A major player pointed out that new positions were booked with a degree of caution which took time for market to pick up. Main activity was observed either at the beginning of the session or by the end.

Auto sector scrips hit upper circuit after suffering days of hammering. Investors also waved aside the fear of Pakistan’s exclusion from the MSCI EM Index as Lucky Cement also hit its upper circuit. Exploration and production and fertiliser sectors gained 170 points each while banks were up by 151 points, cement 117 points and oil and gas marketing companies 87 points.

The volume increased 7pc to 194 million shares, while traded value rose 10pc to Rs6bn. TRG Pakistan, Lotte Chemical, Bank of Punjab, Worldcall Telecom and Engro Polymer and Chemicals were the leaders, reflecting 29pc of the aggregate turnover.

Major contribution to the index came from Pakistan Petroleum 2.78pc, Engro Corporation 3.14pc, Lucky Cement 4.76pc, United Bank 2.94pc and Pakistan State Oil 4.82pc, adding 173 points. On the flip side, Pakistan Tobacco, down 5pc, and Bank Al Habib 1.20pc took away 47 points.

Published in Dawn, October 18th, 2018