Stocks rebound as economic clarity emerges
2
KARACHI: Bulls staged a comeback on Thursday as clouds of uncertainty hanging over the negotiations for financial assistance packages from Saudi Arabia and China dispersed providing some view on the progress.
Saudi envoy’s assurance of releasing the agreed $3 billion assistance in coming days and the Chinese deputy chief of mission stating that further modalities of support package were being worked out and that “it will be more than what extended by Saudi Arabia in terms of financial grant” went on to revive investors’ interest in equities.
The KSE-100 index gained 434.58 points (1.06 per cent) and closed at 41,428.63. After a hesitant start, the market was flooded with volley of buy orders and the index continued on an upward trajectory, making intraday high of 484 points in the lead of cement and banking sectors.
Investors’ appetite for cement stocks grew as international cold prices further fell. Commercial banks contributed the most with 214 points in the lead of heavyweight United Bank and Habib Bank, which hit their upper circuits.
Exploration and production sector saw recovery as crude oil prices rebounded while fertiliser sector also recorded gains with heavy volume in Engro Fertiliser, Fauji Bin Qasim and Fauji Fertiliser.
Foreign investors restarted selling and disposed off stocks worth $2.75 million while Institutional players observed a cautious stance. Local individuals were the major buyers of shares worth $3.62m.
The volume decreased by 1pc to 255m shares while the traded value fell 17pc to Rs11bn. Stocks that contributed significantly included Lotte Chemical, TRG Pakistan, Pak Elektron, Siddiqsons Tin Plate and Engro Polymer and Chemicals, reflecting 35pc of total turnover.
Among scrips, major upside came from Habib Bank, up 4.91pc, United Bank 5pc, Lucky Cement 3.04pc, Pakistan Petroleum 1.24pc and Fauji Fertiliser 1pc, adding 255 points.
Published in Dawn, November 16th, 2018
