KARACHI: Stocks closed on a bullish note on Friday with the KSE-100 index gaining 252.43 points (0.84 per cent) to close at 30,467.20.
The volumes declined 67pc over the previous day to 48 million shares from 147m shares while the traded value also dropped 52pc to Rs2.43 billion from Rs5.11bn due to the PSX decision to forego the second session on Friday due to Defence Day and to join in the nation’s expression of solidarity with Kashmir.
In the shortened hours on Friday and four days’ holiday ahead including two closed days due to Ashura holidays, investors were disinclined to take fresh positions.
Early on, selling pressure was evident across the board mainly due to negativity created by rumour of rights issue by cement companies.
Mutual funds were the major sellers of equity worth $2.49m. However, the sentiments turned positive later on with the prospects of rate cut and latest Consumer Price Index (CPI) release.
The index moved between the intra-day low and high of 203 and 336 points respectively. Banks, exploration and production and power sectors contributed mainly to the spike in index, where Habib Bank Ltd (HBL) saw upper circuit and both Oil and Gas Development Companies (OGDC) and Pakistan Petroleum Ltd (PPL) saw rate spiking to their highs in the recent past.
Analyst Ahsan Mehanti stated that data on CPI Inflation for August, likely resolution of the Government Infrastructure Development Cess issue, higher global crude oil prices and speculations on government’s resolve of privatisation of entities played a catalyst role in bullish close.
In the banking sector, HBL, Allied Bank Ltd and United Bank Ltd closed higher while selling pressure was seen in the cement sector as D. G. Khan Cement, Maple Leaf and Fauji Cement Company Ltd closed in the red.
The index upside was attributed mainly to HBL up 4.38pc, Hub Power Company 3.30pc, OGDC 2.94, PPL 1.71 and Engro Fertiliser 1.30pc.
Published in Dawn, September 7th, 2019