KARACHI: Stocks extended the gaining streak for the second day as investors went in to buy choice scrips that enabled the KSE-100 index to climb further up by 273.94 points (0.94 per cent) and close at 29,505.57.

Positive closing on the first day of the new month brought relief to investors who had weathered March, which wiped off 23pc points from the benchmark index, the unkindest cut since December 2008.

Although the Index hit intra-day high by 459 points, nervous investors, mainly the individuals, continued to book profit that kept market gains range-bound. A slowdown was expected after massive value buying a day earlier. Uncertainty and weakness in global equity and commodities also kept buyers cautious.

During the day, investor sentiments improved as inflation numbers released by the Pakistan Bureau of Statistics for Mar’20 clocked in at 10.24pc, receding from 12.40pc in February. Traders said that the figures were close to street consensus that gave confidence to the investors that the price levels may continue to be under control. That in turn raised hopes that yield on fixed instruments, particularly T-bills and PIBs, would dip further and attract funds to the heavily discounted stocks.

On the negative side, the Federal Board of Revenue announced a revenue loss of over Rs250 billion for March owing to the coronavirus-led downturn in economic activity which kept investors on their toes.

Foreigners sold shares valued at $4.44 million, which were mainly picked up by mutual funds amounting to $3.58m. The volume declined 13pc over the previous day to 193.7m shares while traded value also decreased by 9pc to $40.1m.

Sectors contributing to the index gains included banks, rising by 46 points, textile 37 points, auto 33 points, investment banks 33 points and exploration and production 32 points.

Stocks that were major gainers included Engro Corporation, up 1.3pc, Faji Fertiliser 1.1pc, MCB 1.8pc, United Bank 2.1pc and Pakistan Petroleum 1.3pc.

Published in Dawn, April 2nd, 2020