Bulls charge back with a 504-point rally
KARACHI: Bears were mauled down by the bulls on Tuesday who tossed the KSE-100 index up by 504.74 points (1.11 per cent) to 45,876.70, just 50 points short of the intraday high.
Market participants fumbled for reasons for the strong rally and several attributed it to traditional pre-budget buying. Others thought that the index was taking a firm start on back of gains in the exploration and production (E&P) sector with higher international crude prices helping to lift the market.
While the National Assembly Standing Committee on Finance unanimously rejected two amnesty bills for declaration of domestic and foreign assets, investors threw caution to the wind and continued to accumulate shares in heavyweight banking, cement, fertiliser and oil and gas marketing companies (O&GMCs).
Fertilisers gained on reports of higher urea prices while further weakening of the rupee helped E&P sector. Generally better than expected result announcements from some key companies contributed to investors’ confidence. Foreigners also did a bit of cherry-picking, represented in net buying of $0.50 million worth stocks.