KARACHI: Stocks managed to retrieve some of the huge losses suffered on the first post-budget session. The KSE-100 was up by 194.61 points (0.58 per cent) to close at 34,019,12 on Tuesday.
Investors had several reasons to accumulate: rally in the regional markets, hike in international oil prices and low valuations that the stocks offered after a fall of 2.27pc on Monday combined to attract value hunter individuals. Institutional players, however, were quiet and foreigners resumed sell-off only after a single day of net purchases.
Intraday, the index rose by 314 points. Mainly the energy scrips: exploration and production; oil marketing companies and refineries led the recovery with banks also managing to gain.
All ten top volume leaders were sideboard items except Searle Company. Investor participation was significantly lower as they still grudged the lacklustre budget. Institutions also deferred taking new positions as smart lockdown in some cities of Punjab raised fears of another countrywide lockdown as new cases of Covid-19 failed to recede.
Analyst Ahsan Mehanti commented that some of the figures in the budget were promising including the allocation of Rs650bn Public Sector Development Programme and low inflation target. Besides, the rupee stability amid G20 debt payment relief played a catalyst role in positive close.
Some cement and steel stocks edged higher on renewed buying interest. The volume declined 17pc over the previous day to 217.4m shares while traded value dropped 21pc to reach $39.5 million. Stocks that contributed significantly included Unity Foods, AGL, TPL, Lotte and Hum Network, which accounted for more than a quarter of total turnover with the chemical sector posting the highest shares of 28.7m.
Sectors contributing to the performance included exploration and production, higher by 65 points, banks 32 points, power 23 points, oil and gas marketing companies 21 points and pharma 12 points.
Scrip-wise, Mari Petroleum, gaining 2.1pc, Pakistan Oilfields 1.8pc, Hub Power 1.2pc, Oil and Gas Development Company 1.1pc, Engro Corporation 0.6pc, Pakistan Petroleum 1.2pc, Habib Bank 0.6pc and United Bank 1pc were the major index movers.
Published in Dawn, June 17th, 2020