Stocks gain 579 points on positive macros

Updated 22 Oct 2020

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The index knocked down the 41,000 barrier and closed the session with a gain of 579.34 points (1.41 per cent) at 41,535.92. — AFP/File
The index knocked down the 41,000 barrier and closed the session with a gain of 579.34 points (1.41 per cent) at 41,535.92. — AFP/File

KARACHI: The stock market extended its spectacular rally for the third successive day underpinned by encouraging economic data for Pakistan that recorded current account surplus for September, which represented third consecutive month of a CA surplus in a row.

Market sentiment was also lifted by exciting corporate results unveiled by banks, oil and gas, fertiliser and steel companies; the market ruling out black listing in the plenary session of the Financial Action Task Force (FATF) on Friday; the strengthening of the Rupee against the dollar and improvement in international prices of crude.

On Thursday, the market once again started out in the positive and the benchmark KSE-100 index continued to climb for all of the day, touching intra-day high by 656 points.

The index knocked down the 41,000 barrier and closed the session with a gain of 579.34 points (1.41 per cent) at 41,535.92.

Already in the last three days, the benchmark has accumulated 1,400 points. Traders however cautioned investors to exercise restraint: buy on dips and sell on strength -- as the conditions on the political front presented a filthy picture with the Pakistan Democratic Movement now scheduled to flex muscles in Quetta.

Traded volumes increased 34pc from the earlier day to 661.3 million shares. Traded value also rose by 33pc to reach $134.9m. Market watchers said that high volume in a bull market could suggest further escalation in stock prices.

The market capitalisation on Thursday surged by Rs95 billion. Companies and mutual funds were major buyers while banks and individuals, unable to take the heat, offloaded stocks.

Foreign investors seized the opportunity to book profits at higher levels though sale of shares worth $2.47m.

Analysts said that investors took positions in oil and gas, cement and power sector stocks with a positive view on FATF ruling. Banks, fertiliser and technology sectors outperformed the index.

Scrips that contributed heavily to index upsurge included Bank Al-Habib Ltd, up 77 points, Engro 46 points, Engro Fertiliser 43points, Hub Power Company Ltd 34 points and Systems Ltd 26 points.

Fauji Fertilizer and Meezan bank also showed escalation in prices.

Published in Dawn, October 22nd, 2020