KARACHI: After an early morning hiccup that saw the KSE-100 index roll down by 165 points on the the first day of the shortened rollover week, the investors threw caution to the wind and started to accumulate value scrips that saw the index regain the losses and climb to intraday high by 564 points.
The index closed up by 506 points, or 1.13 per cent, at 45,407.
The investors’ interest in equities was elated by last Friday’s SBP announcement of the status quo on policy rate with projection of higher economic growth at 3pc. The increasing value of the rupee and the government’s denial of a complete lockdown despite rising Covid cases also gave confidence to buyers.
But above all the market chatter of IPPs likely to receive first tranche of receivables before the end of the month was thought to increase liquidity of the energy sector. That, together with the reports that the Ministry of Energy was ready with the new policy for refinery companies which would provide them major incentives for development and expansion, enthuse new life in the entire energy chain with the refineries, power and index heavy E&P sector stocks coming under brisk buying.
Consequently, OGDC, PPL and Mari Petroleum cumulatively added 236 points while Hubco, Kot Addu and PSO added 88 points to the index. OGDC, PPL and Hascol hit their upper circuits.
Among refineries, Attock hit its upper circuit breaker while the others — Pakistan Refinery, National Refinery and Byco — also closed with good gains.
Stocks that made major contribution in the index gains included OGDC (111 points), PPL (101 points), TRG (44 points), PSO (44 points) and Hubco (41 points).
Mutual funds led the buyers with purchase of stocks worth $3.73m. Individuals also cherry-picked shares of $0.99m, while institutional investors and broker proprietary trading showed profit booking.
The trading volume declined 9pc over the previous session to 440m shares and the traded value however increased by 1pc to $141.7m.
Published in Dawn, March 23rd, 2021