KARACHI: Stocks snapped four-day losing streak on Monday as shares rebounded in the lead of index-heavy oil & gas and refinery stocks. The KSE-100 index climbed 229 points, or 0.49 per cent, to close at 47,366.
Investors were encouraged by the relative calm in global markets, together with the spike in commodity prices.
The international crude oil prices ascended due to hurricane Ida, which lashed shores of Louisiana. Sentiments were buoyed by the whispers in the market that seemed to confirm that the Oil Refinery Policy 2021 was close to approval.
It triggered buying in the refinery sector that saw all three stocks National Refinery, Attock Refinery and Pakistan Refinery lift hit their upper circuits.
Besides refinery and E&P sectors that contributed most to the index upsurge included cement, fertiliser and power. Banks continued their downhill course. Stocks that contributed positively to the index included Hubco (75 points), Engro Corp (31 points), OGDC (26 points), PPL (22 points) and TRG (17 points).
Traders said that the market drew optimism from the economic plan unveiled by the finance minister which set the growth target at 6pc in three years.
The vaccination against Covid-19 going on in full swing together with opening up of educational institutions in Sindh, provided comfort to the investors who were assured that the pandemic was in control.
The investors set politics aside as all seemed quiet on the Afghan front.
On the local political scene, few believed that the opposition’s rallies amounted to anything more than sound and fury signifying nothing.
The index rose to intraday high by 332 points. Companies and mutual funds entered into value buying while individuals disposed of equities on Monday rocked by last week’s heavy declines.
Foreign investors also disposed of equity worth $0.88m. The only major result announced on Monday was that of Hub Power which distributed higher-than-expected cash dividend at Rs5 per share.
The trading volume remained virtually the same at 382.6m shares with Byco Petroleum in the lead with change in hands in 43m shares.
Published in Dawn, August 31st, 2021
