Stocks end four-day losing jinx with 126-point gain

Published January 25, 2020
Institutions cherrypick shares in banks, cement, textiles and exploration and production. — AFP/File
Institutions cherrypick shares in banks, cement, textiles and exploration and production. — AFP/File

KARACHI: Stocks managed to snap the four-day losing streak on Friday when the KSE-100 index managed to settle for the weekend with a gain of 126.08 points (0.30 per cent) at 42,633.

The market opened in the red and continued to shed values until positives such as the government’s determination to pull the country out of the Financial Action Task Force (FATF) grey list in February review, came in to improve investor sentiments. Enough support was claimed to have been garnered from countries to endorse Pakistan’s cause.

Besides, institutions cherrypicked shares in banks, cement, textiles and exploration and production as they looked forward to improved bottom lines in all but cyclicals. Comfort was also provided to the market by the increase of $146 million in SBP foreign exchange reserves, improved data of foreign direct investment in Jul-Dec’19 and stability of the rupee.

On the darker side, start of the rollover week for the futures contract from Monday compelled weak holders to seek an exit by virtue of which individuals were the only net sellers of equity worth a huge $13.42 million. Mutual Funds, companies and banks took fresh positions while foreigners were major drivers of the rally in the second half as they picked up equities worth $6.59m. The index oscillated between the intraday low and high by 256 and 200 points.

The volume dropped by 25pc to 173m shares while traded value also declined 31pc to Rs6.73 billion. Major contribution came from Maple Leaf Cement, Al Shaheer and Hascol representing a cumulative 45.6m shares traded.

Scrip-wise, major gainers were Pakistan Petroleum, higher by 1.95pc, Bank Al Habib 1.30pc, Lucky Cement 1.11pc, Hub Power 0.68pc, MCB 0.72pc and Nishat Mills 3.21pc. Conversely, profit-taking in Pakistan Oilfields, slipping by 1.61pc, Habib Bank 0.54pc and Shifa Intl 5.38pc were a drag on the index.

Published in Dawn, January 25th, 2020

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