Stocks notch gains despite volatility
KARACHI: The stock market extended its rally on Thursday, with the benchmark KSE-100 index adding 210.11 points to close at 49,665.97.
The index started the day on a strong note as it made intraday gains of 478 points, but then succumbed to selling pressure in the second half and turned slightly red. However, with renewed interest from value investors, the index climbed back into the black. But despite the volatility, 43 stocks closed on their upper limits in contrast to 17 closing at their lower circuits on Thursday.
Analysts at some brokerage houses believed that the market remained volatile as investors remained concerned over possible outcome of a Securities and Exchange Commission of Pakistan’s ruling against margin financing. Ahsan Mehanti at Arif Habib Corporation said the increase in National Savings Schemes profit rates invited mid-session pressure in banking stocks.
From the sector perspective, telecommunication rose 2.34pc, energy 1.75pc and consumer discretionary 1.03pc contributed the most towards intraday gains, analysts at Intermarket Securities said. Major contribution to the upside came from Pakistan State Oil which increased 5pc, Hub Power Company 1.26pc, Pakistan Petroleum Ltd 1.42pc, Mari Petroleum 4.05pc and International Steels Ltd (ISL) 4.99pc, adding 150 points to the index in aggregate.