KARACHI: The stock market extended rally for the second day with the KE-100 index recording gains of 185.51 points, or 0.41 per cent, to close at 45,981.82.

The index faced stiff resistance at the 46,000 level, though intraday it managed to cut through the barrier and post the high of 46,034.46. Market watchers calculated that the index was able to breach the barrier of 46,000 (intraday) after 47 sessions. During the day’s trading the index swung between the high and low of 238 and 178 points.

The investors’ appetite for risky asset returned on several positive developments which included the sharp decline in Covid-19 positive ratio to 8.61pc; record high remittances of $2.778bn received in April and the country’s foreign exchange reserves rising to $22.91bn.

Sector-wise, it was witnessed that the construction industry picked up pace after Ramazan, which emboldened steel bar makers to increase prices by Rs5,000 per tonne to Rs142,500-143,500 per tonne. Automobile sales in Pakistan also jumped up by 54pc in the first 10 months of FY21.

Those developments, however, failed to attract investors to the steel and auto sector.

Analysts said that on anticipation of approval by the federal cabinet for first instalment to IPPs, renewed investor interest was seen in the energy chain as PSO, SNGP and OGDC closed the day up 4.62pc, 4.74pc and 0.53pc, respectively. Inves­tors also took comfort from reports of a meeting of Cabinet Committee on Privatisation scheduled for Wednesday, to discuss long-awaited divestment of OGDCL and PPL.

Among participants, individuals were again the major buyers of stocks worth $6.40m. Companies also cherry-picked equities amounting to $1.72m. Foreign investors sold shares of $3.61m. Banks and mutual funds also continued to take profit.

Sector-wise, technology and communication took the lead with volume of 143m shares. Chemical sector followed with volume of 62m shares and food & personal care sector saw business in 56m shares. The scrips that added most points to the index were PSO (50 points), TRG (43 points), Unity Foods (36 points), Mari Petroleum (30 points), and PPL (21 points).

Published in Dawn, May 19th, 2021