Stocks stage 370-point rally on aggressive buying

Published March 3, 2021
Stocks staged a surprise rally on Tuesday as all eyes were on the Senate elections to be held on Wednesday. — AFP/File
Stocks staged a surprise rally on Tuesday as all eyes were on the Senate elections to be held on Wednesday. — AFP/File

KARACHI: Stocks staged a surprise rally on Tuesday as all eyes were on the Senate elections to be held on Wednesday. However, the pragmatists among in­­vestors thought it the right time to pick up stocks available at attractive valuations.

The KSE-100 index gained 370.84 points, or 0.81 per cent, to close slightly short of the 46,000 level at 45,964.27. Earlier, the index oscillated between the intraday high and low by 484 and 58 points.

Traders said that as most major companies had announced financial results for the quarter ended Dec 31, 2020, investors had been booking profit. But prospects of release of funds on account of circular debt resolution prompted investors to take positions in energy chain (O&GMCs and Power sectors).

Buying activity was also observed in banks, refinery and textile sectors. More­over, the automobile sector saw renewed buying interest with the sector closing up 2.20pc. Engineering sector closed up 3.15pc for the day as steel stocks ramped up substantial gains. Mixed sentiment was seen in the cement sector where Lucky, Kohat and Fauji closed in the red zone while Cherat closed green.

A lower than expected CPI of 8.70pc year-on-year for February helped boost investor sentiments. But the international oil prices slipped by 1.4pc on Monday, as Opec+ hinted at increase oil supply this week. The technology and engineering sector came in limelight as customs authorities have linked the value of steel scrap with the London Metal Bulletin.

Sectors that contributed most to the index gains included banks (109 points), technology (65 points), power (56 points), O&GMCs (53 points) and (29 points).

Banks, individuals and insurance companies were major buyers, while companies’ insurance companies and broker proprietary trading saw profit-taking. Foreign investors also sold shares worth $3.53m.

The traded volume in­­creased 8pc over the previous session to 399.2m shares.

Published in Dawn, March 3rd, 2021

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