Stocks cheer mini-budget with 718-point rally
KARACHI: The stock market staged a grand rally on Tuesday as the KSE-100 index stormed past the 41,000-level to settle at 41,238.07, with gains of 717.60 points (1.77 per cent).
The market took a muted start with investors spooked over the announcement of mini-budget later in the day. It extended the previous day’s heavy losses triggered by the increase in gas prices, which was supposed to hit mainly the steel, cement and chemical sectors.
But post announcement of budgetary measures, investors were relieved of many fears, particularly the much feared cut in Public Sector Development Programme which was thought to have negative repercussions on the cement and steel sector and around 42 ancillary industries.
Some relief measures announced for the export-oriented industry boosted investors’ sentiments and propelled the index to intraday high by 750 points.
The volume improved 15pc over the previous day to 166 million shares while the traded value also increased by 38pc to reach Rs7.54 billion. Lotte Chemical, Unity Foods, Maple Leaf Cement, Descon Oxychem Ltd and TRG Pakistan accounted for 27pc of the total volume.