KARACHI: On the first day of the rollover week, investors at the stock market threw the usual caution to the wind even as the leverage position was at high Rs41.17 billion (Rs22.8bn open positions in the futures counter).

Investors went into a buying spree that carried the KSE-100 index up by 219.60 points, or 0.48 per cent, to close at 46,087.64. Earlier, the index hit intraday high by 321 points.

The rally was underpinned by buying in cement, steel, power and oil & gas marketing companies in anticipation of healthy results by the corporates in the result season to start in a day or two.

But it was the technology stocks that carried the day where the three fastest moving shares in the market, TRG and Avanceon Ltd hit the upper circuits while Netsol Technologies fell slightly short of the upper lock.

According to figures released by the National Clearing Company of Pakistan Ltd, foreign investors were noted to have sold shares in the considerable sum of $5.02m. Companies, banks and mutual funds also resorted to profit-taking, but all of the liquidity was absorbed by the individuals, insurance companies and brokers proprietary trading.

Stocks that gave major support to the index to climb higher included TRG (85 points), Hubco (20 points), ANL (17 points), Unity Foods (17 points) and FFC (17 points).

AGP Pharma Pakistan was the first to lock at the upper circuit on reports that the health authorities had granted emergency use authorisation to the Russian Covid-19 vaccine. AGP Pharma had applied for registration, marketing and distribution of vaccine in Pakistan, analysts said.

With the market still awaiting the promised Textile Policy, the sector witnessed activity in selected stocks. The other leveraged sector, cement, also saw several leading issues in the green throughout the day.

The traded volume increased 9pc over the previous session to 470.1m shares while the traded value jumped by 33pc to $130.9m. K-Electric led the volumes table contributing 36.6m shares or 8pc of the total traded volume. Other volume leaders were Unity Foods, TRG, ANL and FFL.

Published in Dawn, January 26th, 2021