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