KARACHI: Extending the seemingly unending bull run, the stock market opened on Friday in the positive and the KSE-100 index closed the first session before prayers at intraday high of 347 points.
In the second half, investors thought it prudent to reduce positions ahead of the weekend as many were nervous over the already high levels. The index finished at trimmed gains of 91.15 points (0.22 per cent) at 40,732.25.
More satisfying news on the economic front were well received. The Asian Development Bank approved two loans totalling $1.3 billion for budgetary support and key reforms in Pakistan to help strengthen the country’s economy. Furthermore, the State Bank has reiterated to shift the country to an export-based economy to achieve sustainable growth.
Mutual funds turned buyers of stocks worth $4.56 million while companies and banks offloaded equities. Major contribution to the index upside emanated from the exploration and production (E&P) and oil and gas marketing companies.
Selling pressure, on the other hand, was largely witnessed in banking which was weighed down by profit-taking as the sector had seen a massive rally for several days. Cement also saw offloading and led the volume table with 84.8m shares, followed by vanaspati at 53.5m and technology 35.2m. Among scrips, Unity Foods saw turnover of 53.5m shares, Fauji Cement 31.9m and Maple Leaf Cement 18.6m.
The volume declined 18pc to 416.1m shares, from 507.9m while traded value dipped by 25pc to $97.7m, as against $129.8m.
Sectors contributing to the performance included E&P, higher by 64 points, food 30 points, insurance 21 points, fertiliser 23 points and chemical 15 points. Among stocks, gainers were Bank Al Habib, up 2.4pc, Hub Power 1.3pc, Engro Fertiliser 2.4pc and Oil and Gas Development Company 1.2pc.
Published in Dawn, December 7th, 2019