KARACHI: Stocks extended the ongoing rally on Wednesday when after opening in the green, the index continued to climb until it reached intra-day high by 392 points.
Mid-day profit taking pulled the index down which managed to retain the day’s gains of 169.92 points or 0.37 per cent and crossed over the 46,000 level after 32 months at 46,091.96 points.
Investors have come to visualise improvement in the economy on the basis of increase in remittances, stable foreign exchange reserves and currency. The recovery from the first wave of pandemic received credence by figures of the double-digit growth of 14.46pc in the large scale manufacturing.
Crude oil prices in the international market climbed higher which was primarily on account of the consistent draw down in global floating storage of crude products. It provided support to the exploration & production sector where Pakistan Oilfields and Oil and Gas Development Company recorded price gains. Cement shares saw spike in prices on expectations of healthy financial results in the about to commence reporting season.
A positive statement released by the Moody’s near the end of trading helped several banks close with gains. MCB Bank Ltd, Habib Bank Ltd (HBL), Bank Al Habib Ltd, National Bank of Pakistan and Askari Bank Ltd ended in positive zone.
The buying spree by the foreign investors snapped on Wednesday as the overseas investors booked profit in shares valued at $4.62 million. Companies, brokers reduced positions while banks, mutual funds and banks were ready buyers.
Traded volumes edged higher by 2pc over the already heavy volumes at 845.3m. K-Electric (KEL) was volume leader for the second day with dealing in 110.5m shares.
Top performing sectors were technology, cement, textiles and banks. Power generation and distribution sector also kept up the performance after the progress in circular debt settlement between the government and the independent power producers.
Scrip-wise, the major uplift to the index was provided by Systems Ltd; TRG Pakistan, Pioneer Cement, HBL and International Industries Ltd. Stocks that were a drag on the index included United Bank Ltd, Pakistan Tobacco, Dawood Hercules, Millat Tractors and KEL.
Published in Dawn, January 14th, 2021