Bull run enters third day with 467-point rally
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KARACHI: Stocks amassed more gains on Wednesday, extending the strong rally into the third day on Wednesday with the KSE-100 index up by 467.49 points (1.36 per cent) which settled close to 35,000-level at 34,889.41.
During the day, the index hit intraday high by 502 points, mainly in line with bull run in regional markets as countries were putting the need to re-open economy ahead of the fear of Covid-19.
The fuel that fired the buying at the local stock market was provided by a number of positive developments. Institutions were the major buyers as they switched to equity and other investment class as the government barred them from the National saving schemes.
Foreigners sold shares worth $3.39 million and individuals also booked profit as they offloaded stocks of $4.62m. Insurance companies ploughed heavy sum of $6.45m in equities.
Cement sector rose on the back of recent increase in prices in the north and reduction in Federal Excise Duty to Rs1.50 per kg, from earlier proposal in the budget at Rs1.75 per kg. Moreover, the Pakistan Bureau of Statistics announced inflation for June at 8.59pc which was in line with market expectations. The State Bank receiving $1.3 billion from Chinese banks helped support a positive outlook on the country’s economy.
Sector-wise, international oil rates being on the upward trend saw most exploration and production stocks on the rise. Oil marketing companies recovered as retail prices were raised that went to minimise the inventory losses. Provisional fertiliser offtake for June indicated that urea sales had recorded a massive surge of 83pc YoY and 390pc MoM to 1.175m tonnes.
The volume increased further 41pc to 315m shares, from 223.3m with significant contributions coming from K-Electric, Hum Network, TRG, Maple Leaf and DG Khan Cement, accounting for 43pc of total turnover.
Stocks that helped the gain included Lucky Cement, up 95 points, Hub Power 68 points, Oil and Gas Development Company 58 points, Pakistan Petroleum 41 points and Engro Fertilisers 38 points.
Published in Dawn, July 2nd, 2020
