KARACHI: Bulls staged a surprise rally on Thursday which sent the KSE-100 index up to intraday high by 545 points. The closing was seen above the 34,000-level at 34,204, registering increase of 442 points (1.31 per cent).
The political scenario remained murky with the JUI (F) Azadi march knocking the doors of the federal capital. The uncertainty of events following the entry into Islamabad by the protestors kept investors on tenterhooks. But the reason that set the market fears aside was the further drop in Pakistan Investment Bonds auction a day earlier.
Analysts said that yields declined especially in 10-year instrument that fortified the view of rate cut in the upcoming monetary policy. Announcement of next auction before the next monetary policy also helped money managers take a view that the yields will decrease further or at least remain the same.
It raised hopes of flow of funds back to equities from fixed income securities. The market was also supported by the end of traders’ strike after they reached an agreement with the Federal Board of Revenue.
Foreigners decided to book profit with net sale of shares valued at $2.05 million. Banks and mutual funds offloaded shares, but the liquidity was absorbed by insurance companies, individuals and brokers.
The volume surged 42pc to 183.9m shares while the traded value also increased by 37pc to $44.1m. Worldcall, Bank of Punjab, Maple Leaf Cement, Pakistan Petroleum and Siddiqsons Tin Plate, collectively contributed nearly a third of the aggregate turnover. Buying activity was observed across the board.
Major gaining scrips were Engro Corporation, up 2.72pc, MCB 3.36pc, Dawood Hercules 4.99pc, Pakistan Petroleum 2.24pc, Pakistan State Oil 5pc, United Bank 1.88pc, Lucky Cement 1.84pc, Habib Bank 0.67pc, DG Khan Cement 0.67pc and Oil and
Gas Development Company 0.69pc.
Published in Dawn, November 1st, 2019