KARACHI: The stock market remained bullishly inclined on the first trading day of the week with reduced investor participation as value hunting of scrips got the better of short-term day trading.
Scrips on various sectors rose in the lead of automobiles, technology, banks and oil & gas marketing companies.
The KSE-100 index settled at 43,675.28 points or 0.59 per cent recording gains of 257.71 points. The index reached intra-day high by 344 points which was attributed also to short covering by weak holders in view of the roll-over week.
Investors’ sentiments improved on some positive news. Those included the decrease in Covid-19 cases; International Monetary Fund’s acceptance of Pakistan’s request to delay implementation of some significant tax measures for a period of six months and the commerce adviser stating that the government would cut import duties on industrial inputs from 6pc to spur industrial production and encourage export-oriented sectors.
Most sectors on the cyclicals: cement and steel started out in the green on reports that the Economic Coordination Committee of the Cabinet had approved issuance of $500 million Eurobonds to finance construction of dams.
But the gains later were greatly shaved or the stocks dived into the red on profit taking.
Traders said that the positivity in the market came from oil & gas marketing companies, fertiliser and power sectors. International crude oil prices rebounded during the session, but a lukewarm response was seen in the exploration & production scrips such as the Oil and Gas Development Company and Pakistan Petroleum Ltd.
Foreign investors sold shares worth $4.54m. Among local participants, individuals and mutual funds mopped up the equity.
Traded volumes decreased 19pc from the previous day at 463.4m shares and traded value also declined by 26pc to reach $117.8m. K-Electric Ltd topped the volumes leaders list with change of hands in 46.1m shares.
Stocks that lifted the index included TRG Pakistan, Meezan Bank, Unity Foods, MCB Bank and KE.
Published in Dawn, December 29th, 2020
