KARACHI: Stocks extended the winning streak for the second day by adding another 445.12 points, or 0.99 per cent, to the KSE-100 index which settled at 45,186.48.
All the investors’ worries over the big fall early in the week evaporated as participation grew larger represented by huge increase in traded volume by 79pc over the previous day to 688m shares and traded value up by 40pc day-on-day to Rs25bn.
Without once dipping in the red, the index continued its climb to hit the intraday high by 508 points.
Most analysts said that the rally in the market was triggered by the statement of the SBP governor in which he indicated that interest rates would remain at current levels in near future.
The investors’ confidence received a boost on anticipation of strong growth in sales and profitability of corporates in the upcoming quarterly results. The cyclicals cement and steel were thought to outperform which saw extensive buying in stocks on those sectors.
On Friday, massive recovery in technology and refinery sectors saw several shares hit their upper circuits or close with heavy gains. Some market men were peddling the news of approval of the new refinery policy by the Petroleum Division. Most market watchers thought that the developments on the political front where divisions in the ruling PTI seemed to dethrone the government, would be resolved. The fear on the increasing Covid infection cases receded as vaccination drive was in full swing.
After two days of sell-off foreign investors (mainly overseas Pakistanis) turned net buyers of stocks worth $2.88m. Sector-wise major contribution to the market gains came from technology (139 points), E&P (84 points), cement (51 points), banks (46 points) and textile (44 points).
Among scrips, those that contributed the most points to the index included TRG (120 points), HBL (29 points), POL (28 points), NRL (24 points) and PPL (22 points).
WorldCall, TELE, Byco Petroleum, Unity Foods and Pakistan Refinery
contributed 44pc to the total turnover. WorldCall Telecom alone saw change of hands in 124m shares which was 18pc of the aggregate turnover.
Published in Dawn, April 10th, 2021