KARACHI: Stocks maintained the upward trajectory for the second day with the KSE-100 index recording gains of 204.30 points (0.51 per cent) and close at 40,624.39.

Although the index touched intraday high by 228 points, the market lacked exuberance. Figures released by the National Clearing Company of Pakistan showed that the upsurge was led by foreign investors who continued to take fresh position with net buying of $1.47 million worth equity. Net foreign inflows now amount to $19.8m in the last six sessions combined.

Local participants — both individuals and institutions — generally remained on the sidelines as they looked for clarity over the International Monetary Fund programme and slight nervousness over the steady rise of index by 9.6pc in January. The market recovered after a midday decline of 113 points as participants reacted positively to news flow that Economic Coordination Committee (ECC) had approved the launch of Rs200 billion Sukuk for partial settlement of circular debt.

The day started with the United Bank notification that it had closed down the New York branch, which sent shares in both it and Habib Bank to trade in red for almost the entire day. The volume increased 23pc to 154m shares while traded value rose 33pc to Rs6.86bn. Second-tier stocks accounted for a quarter of the day’s volume.

Sector-wise best performers were oil and gas exploration and production, oil and gas marketing companies (OMC) and fertiliser as they added 148 points cumulatively. OMC sector remained in limelight due to moratorium imposed on granting new licenses to local investors until new minimum investment requirements were approved by ECC.

Pakistan Petroleum, up 2pc, Oil and Gas Development Company 1.6pc, Engro Fertiliser 2.2pc, Pakistan State Oil 2.2pc and Hub Power 0.8pc together added 129 points.

Published in Dawn, January 30th, 2019