KARACHI: Stocks exte­nded the relief rally on Wed­n­e­sday as the KSE-100 index recovered another 240.73 points (0.73 per cent) and closed at 33,439.69.

Market sentiments turned to guarded positivity after investors’ fear over major confrontation between the government and opposition subsided a bit as the two teams settled down to some kind of a dialogue.

The announcement by the JUI (F) chief that the anti-government Azadi March may not be followed by a sit-in helped investors breathe a sigh of relief. In late trading, the news filtered in of the government allowing a peaceful march which further elevated sentiments.

However, the news did not convert into a major upside as there were other disconcerting issues. Buyers hesitated to build fresh positions in the ongoing rollover week for future contracts while the uncertainty remained regar­ding government actions plans to comply with Finan­cial Action Task Force recommendations. Traders said that the results season also kept investors on their toes as general expectations were glo­o­my bottom lines from cyclicals, mainly cements and steel.

The volume surged 40pc to 116.9 million shares, from 83.6m while traded value also increased by 13pc to $23m. Stocks that contributed significantly included Worldcall Telecom, Lotte Che­m­ical, Quice, Unity Foods and Bank of Punjab, which formed 30pc of total turnover. Foreign investors turned net sellers of equity worth $0.52m while mutual funds bought shares of $1.34m.

Sector-wise, cement came under selling pressure wher­e­as exploration and production added the highest at 96 points.

Banks also helped index mount in spite of a few declining scrips. Mixed sentiments were seen in fertilisers, where big names Engro Corporation and Fauji Fert­iliser closed in the positive.

Among scrips, major gainers were Engro Corporation, up 2.10pc, Oil and Gas Devel­opment Company 1.71pc, MCB 1.86pc, Pakistan Oilfi­elds 2.56pc, Pakistan Petro­leum 1.52pc, Nestle Pakistan 4.92pc, Mari Petroleum 2.32pc, Pakistan International Bulk Terminal 6.88pc and Fauji Fertiliser 0.77pc.

Published in Dawn, October 24th, 2019