KARACHI: Stock market continued its upward trajectory on the last day of the month with the KSE-100 index taking a big leap of 770 points, or 1.63 per cent, to close at 47,896. Including Monday’s upside, the market accumulated the highest monthly gains of 3,634 points, or 8.2pc, in May.

The market capitalisation rose by Rs136bn for a single day on Monday, as investors continued to mop up stocks across the board pushing the index to intraday high by 853 points. Investors were encouraged by the decision of the Monetary Policy Committee (MPC) which on Friday decided to maintain the policy rate at 7pc.

Numerous other positive factors also collectively helped to lift investor sentiments. After the GDP growth now anticipated to end up high at 4.5pc for the year, reports of historic high remittances of $2.8bn in April, up by 56pc year-on-year, and tax collection exceeding the Rs4.143 trillion for the first time in 11MFY21 ignited buying interest of investors.

Moreover, as per news flows, the Ministry of Finance was likely to pay the first installment of Rs90bn to 35 independent power producers which resulted in increase in shares prices of NCPL, PKGP, Kapco and Hubco.

Investors were also able to concentrate on trading as the coronavirus infection cases have subsided and the country is coming up with local manufacture of a vaccine. All was also quiet on the political front.

Sectors contributing to the bullish performance included banks (98 points), E&P (96 points), O&GMCs (53 points), fertiliser (39 points) and autos (22 points).

Cement sector performed well on the back of increase in cement prices in north region. Activity was witnessed in the steel and automobile sectors where stocks closed higher.

The trading volume rose 45pc over the previous day to yet again cross the 1bn-mark at and finish trading at 1.412bn shares. WorldCall Telecom again topped the list with 481m shares. Other small scrips Byco, Silkbank, Hum Network and GGL joined to form 53pc of total turnover.

On Monday foreign investors bought stocks worth $24.77m, while companies were major sellers of shares valued at $5.10m.

Published in Dawn, June 1st, 2021