KARACHI: The KSE-100 index snapped the five-day losing streak on Wednesday and after an initial hesitation managed to finish the day’s trading with a gain of 322.31 points (up 0.81 per cent) at 40,279.38.

Strong corporate earnings by major banks and few other big ticket companies helped improve investors’ sentiments, who for the time being put the nagging problems of economy and politics on the back burner.

The market opened weak and fell to intra-day low by 268 points before the hesitant institutions started to lap up heavily undervalued scrips. That sent the Index soaring to intra-day high by 373 points.

Financial results of banks: United Bank Ltd (UBL), MCB Bank Ltd and Habib Bank Ltd (HBL) encouraged buying mainly in those scrips and generally across the board.

Volumes increased from 94 million shares to 132m shares (up 40pc DoD). Average traded value also increased by 73pc to reach $48m as against $28m in the previous session. Stocks that contributed significantly to the volumes include Pakistan International Bulk Terminal Ltd, Bank of Punjab, K-Electric, Lotte Chemical and UBL, which formed 32pc of the total volumes. According to the figures released by the National Clearing Company of Pakistan, foreign investors remained net buyers, albeit in the smaller sum of $0.8m. Individual investors could not muster courage to enter and sold stocks worth $3.9m, which was to an extent absorbed by the mutual funds with net purchases of $3m worth equity.

Commercial banks were the best performing sector on Wednesday, adding 174 points to the index gains. It was followed by fertiliser and oil and gas exploration companies, which together contributed 157 points. Mixed sentiment was seen in cements where D. G. Khan Cement up 0.7pc and Lucky Cement 1.5pc closed in the green.

Major contribution to the 100 index upside came from UBL up 4.88pc, Oil and Gas Development Company 1.92pc, Engro Corporation 1.83pc, HBL 1.36pc and Pakistan Oilfields Ltd 1.98pc adding 206pts. On the flip side, Kot Addu Power Company hit the lower circuit as investors were disappointed on nil dividends.

Published in Dawn, February 21st, 2019