Banks lead 399-point rally on stock market
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KARACHI: Stocks staged a rally on Wednesday with the KSE-100 index recording gains of 399.17 points (0.99 per cent) to settle at 40,574.52.
The market opened firm and the benchmark moved north throughout the day to touch intraday high by 469 points at midday.
Positive signals emanating from the ongoing Financial Action Task Force’s plenary session where reports suggested that Pakistan was likely to be granted time up to Oct’20 to implement measures to skip out of the grey list buoyed investor sentiments.
Other good news about the expectation of tamed inflation for February amid some clarity on economic front and better corporate results also helped bring cheer to the market.
The higher crude oil prices helped stocks recoup values in the entire energy chain where share prices increased in the exploration and production, oil marketing companies and refineries sectors.
Cement also saw value buying that propped up stock prices.
Investors who are starved of introduction of new products in the market, were encouraged by the release of notice by PSX stipulating that 14 companies were included in Exchange Traded Funds (ETF).
Foreigners sold shares worth $5 million which were picked up by insurance companies amounting to $2.14m and local corporates $2.01m. Activity picked up at the bourse where volume improved by 56pc to 142.9m shares. Traded value also surged by 33pc to reach $42.2m. Stocks identified as leaders included Unity Foods, Hascol Petroleum, DG Khan Cement, Maple Leaf Cement and TRG Pakistan, which formed 38pc of the total turnover.
Sectors contributing to the performance were banks, higher by 73 points, exploration and production 73 points, cement 51 points, fertiliser 39 points and power 32 points.
Major gains were attributable to buying in heavyweights like Oil and Gas Development Company 2.81pc, United Bank 1.81pc, Hub Power 1.16pc, Pakistan Petroleum 1.19pc, Fauji Fertiliser 1.26pc, MCB 1.06pc, Millat Tractors 5.8pc, Dawood Hercules 1.82pc, Bank Alfalah 2.53pc and Lucky Cement 1.18pc.
Published in Dawn, February 20th, 2020
