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KARACHI: Stocks opened in the green and continued to climb on performance by the heavyweight banking sector. The KSE-100 index reached intra-day high by 466 points, before it succumbed to selling pressure on the Hazara massacre incident and the PM’s adamant approach in regard to the protesters demand.
The politicisation of the incident spooked investors as opposition leaders reached the scene. The uncertainty sent shares tumbling however the index managed to record gains of 191.12 points or 0.42 per cent at 45,345 points by the day’s end.
Foreign investors resorted to buying for the second day; inflows on Thursday amounting to $2.39 million. Among local participants, mutual funds were major buyers of $7.99m worth equities, while insurance companies, individuals and brokers decided to skip out of stocks.
News of removal of additional custom duty on 152 tariff lines, helped textile and related chemical sector stocks to perform, however, profit booking brought the rates down by the end of session.
Banks performed on expectations of higher profitability to be unveiled in the upcoming annual reports and possibility of good pay-outs. United Bank Ltd (UBL), up 6pc, Habib Bank Ltd (HBL) 1.9pc, Bank Al Habib Ltd 2pc, Bank Al Falah Ltd 1.7pc and Allied Bank Ltd 1.2pc were major movers. Regardless of the uptick in international oil prices, selling pressure was witnessed in Oil and Gas Development Company and Pakistan Petroleum Ltd.
The cement sector which started all green, saw share price withdrawals, while investors also opted to book profit in the automobile, pharmaceutical, steel, technology and oil and gas marketing companies sectors.
Chemicals saw a number of names close in the green that helped to keep the Index in the positive. The major scrips that lifted Index included UBL, HBL, Engro Corporation, Fauji Fertiliser Company, Engro Fertiliser and Indus Dyeing.
The traded volume declined 4pc over the previous day to 641.4 million shares. The Traded value increased 3pc to reach $159.5m. Stocks that contributed significantly to the volumes included Byco Ltd, Power Cement, Kot Addu Power Company, Pakistan Refinery Ltd and Pak Elektron, which formed 33pc of the total volume.
Published in Dawn, January 8th, 2021
