KARACHI: Bullish fire continued to leap over the stock market as shares across the board recorded strong gains on Thursday. As the investors fell upon one another in picking up stocks that had declined to attractive valuation, the KSE-100 index climbed by 445 points, or 0.94 per cent, to close at 47,801.
Intraday the index collected 487 points.
Institutional investors who had sold to book profit at the close of FY21, re-entered to make fresh portfolio which was the major reason for shares to rise across the board. The index remained in green territory throughout the day as investor sentiments were improved after a beeline of positive news. The implementation of the budget was thought to bring a host of incentives and tax concessions in various sectors. The investors participation in trading grew as the Capital Gains Tax was reduced from 15 per cent to 12.5pc vide the budget.
On other fronts, the FBR had surpassed the revenue collection target in FY21. Also, inflation numbers for June stood at 9.7pc, which was within the SBP target of 7-9pc and below market consensus.
Also Pakistan’s exports in FY21 reached an all-time high of $25.3bn. On the global front, the international oil prices witnessed a rising trend along with Opec+ members scheduled meeting to discuss expected reduction in supply cut by 500,000 bpd. NAB also allowed Power Division to process payments of IPPs as per the revised contracts.
Sectors contributing to the strong market performance included cement (102 points), E&P (67 points), textile (41 points), chemical (34 points) and fertiliser (29 poionts).
Among scrips, Lucky Cement and Pakistan Petroleum were the major gainers which together added around 100 points to the index. Other stocks that contributed positively to the index included Colgate Palmolive (22 points), NML (21 points) and HBL (19 points).
The trading volume increased 38pc to 760.01m shares from 549.6m shares. WorldCall Telecom topped the volume leaders list with trading in 198.7m shares.
Published in Dawn, July 2nd, 2021