KARACHI: The stock market gave a warm welcome to the government’s relief package, which galvanised the KSE-100 index for fifth consecutive session with a gain of 231.31 points (0.58 per cent) and settle at 40,289.16.

The government announ­ced second supplementary budget which lent support to exports, encouraged investments, lifted the ban on purchase of vehicles by non-filers and gave concessions to increase lending to industry, agriculture and small and medium enterprises. For the stock market, advance tax of 0.02pc on share trading under Presumptive Tax Regime was abolished.

The session started on a buoyant note with the index opening gap up by 534 points as excited investors started to accumulate mid-tier stocks.

Yet the initial exuberance proved short lived as realisation dawned that much of the positives were already priced in following a hefty 9pc index gain in the last three weeks. The market also fell victim to worries over the International Monetary Fund reaction to the relief package which many thought could prove short of their expectations on measures to correct the pressing economic woes. That pushed individuals and institutions to book gains on their trading position.

Strong selling pressure was witnessed in fertiliser, oil marketing companies, chemical and cables. Sectors that positively contributed included cement, higher by 50 points, exploration and production 33 points, miscellaneous 27 points and transport 19 points.

The banks were lead gainers of 130 points, as heavyweights closed in green possibly on purchases by foreign investors who made net buying of shares worth $7.1 million. The volume surged 37pc to 245.9m shares, from 178.9m while traded value also jumped 34pc to $70.9m, from $52.8m. Major contribution of 195 points to the index came from Habib Bank, up 2.4pc, MCB 2.6pc, Pakistan Petroleum 1.6pc, Lucky Cement 2.1pc, Engro Corporation 0.9pc and United Bank 1.2pc.

Published in Dawn, January 25th, 2019