Stocks jump 295 points on individual buying

Published November 7, 2019
The stock market demonstrated bullish trend for the third day in succession with the KSE-100 index climbing 295 points (0.83 per cent) and settle down at 35,358.  — AFP/File
The stock market demonstrated bullish trend for the third day in succession with the KSE-100 index climbing 295 points (0.83 per cent) and settle down at 35,358. — AFP/File

KARACHI: The stock market demonstrated bullish trend for the third day in succession with the KSE-100 index climbing 295 points (0.83 per cent) and settle down at 35,358.

Market men suggested that the investors had moved out of fixed savings into equity after the Central Directorate of National Savings (CDNS) decreased profit rates by 2.33 percentage points to 10.68pc on all savings schemes.

That made individuals the most aggressive buyers of equities on Wednesday with net purchases of shares worth $5.86m.

Investors also seemed to pull out of money market funds as the mutual funds sold shares of $4.02 million to meet redemptions. Intermarket Securities commented that CPI for October clocked in at 11.04pc; well above market consensus of 10.40pc.

“We believe the northbound journey may stall for now and investor sentiment may dampen due to higher than expected CPI number. This may also scale back expectations regarding a rate cut in the upcoming monetary policy,” analysts speculated.

Early morning euphoria sent the index zooming to intraday high by 627 points. But better sense prevailed as realisation dawned of the precarious economic situation, regardless of the brighter picture painted by the Minister of Economic Affairs and the ongoing sit-in by the opposition in the federal capital.

The volume declined 4pc over the previous day to 297.6m while traded value, on the contrary, increased by 21pc to $67.6m.

Sector-wise, cement continued to lead the gainers with the addition of 53 points. Banking also closed higher where Alfalah, MCB, National and Habib were the big movers.

Major contribution to index upside came from Dawood Hercules, higher by 4.23pc, Pakistan Tobacco 4.86pc, Pakistan Petroleum 1.32pc, Lucky Cement 1.84pc, Engro Fertiliser 1.65pc, Nestle Pakistan 4.86pc, MCB 0.85pc, Aadamjee Insurance 4.95pc, Fauji Cement 3.41pc and Pakistan International Bulk Terminal 4.14pc.

Published in Dawn, November 7th, 2019

Now you can follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Another U-turn?
Updated 07 Oct, 2022

Another U-turn?

The PTI’s decision to take back its resignations could herald a twist in the tussle playing out in Islamabad.
Renewed TTP threat
07 Oct, 2022

Renewed TTP threat

THE interior ministry’s call for ‘extreme vigilance’ and instructions to security forces to conduct ‘search...
Women’s gala in GB
07 Oct, 2022

Women’s gala in GB

REGRESSIVE forces, once again, nearly had their way — this time in Gilgit-Baltistan. A three-day sporting gala for...
‘Draconian’ law
06 Oct, 2022

‘Draconian’ law

THE debate over what it means to be ‘sadiq’ and ‘ameen’ has reignited after the incumbent Supreme Court ...
Welcome clarity
Updated 06 Oct, 2022

Welcome clarity

There needs to be consensus amongst all political actors that matters of governance should be the exclusive domain of civilians.
Car purchases
06 Oct, 2022

Car purchases

IF we are in the market to buy a new car, we end up paying a significantly large amount as premium over the sticker...