KARACHI: Stocks climbed higher on Tuesday after a volatile session that saw the KSE-100 index settle at 37,700, up by 49.73 points (0.13 per cent) after taking investors on a day-long rollercoaster ride as the benchmark moved between the intraday high and low by 288 and 282 points.
The day’s proceedings provided clear signs that the bulls were exhausted. In the face of what looks like an impending correction, brokers were the first to book profit with sale of shares worth $2.23 million. Banks followed suit with net sale of shares valued at $2m and foreigners pulled out another $1.20m from the market.
However, mutual funds, individuals, companies and insurance firms continued to take a bullish stance and took fresh positions in mainly cement and the exploration and production sectors. The rallying international market, improving crude prices and figures of large- scale manufacturing kept interest of local participants alive.
The volumes declined 17pc from the previous day to 457.2m shares while traded value remained unchanged at $116m. Stocks that contributed significantly included TRG, Hascol Petroleum, Hum Network, Fauji Cement and Hub Power, which formed 23pc of total turnover.
In the E&P sector, except for the major stock Oil and Gas Development Company, others posted gains. Among fertiliser stocks, Engro Corporation performed well. Technology topped the volumes with 71.7m shares.
Profit booking was witnessed in cement sector later in the day which saw fall in stock prices of Cherat, Maple Leaf, DG Khan and Pioneer. After substantial gains in the previous session on account of news on discovery of vaccine for the pandemic in liaison with foreign firms and price rise, pharmaceutical came under selling pressure with Searle, Ferozsons, IBHL, Glaxo and AGP conceding some of the gains. Power attracted investor interest for the second day where Kot Addu, Hub Power, Nishat Power and Nishat Chunian closed in green.
Published in Dawn, July 22nd, 2020