Stocks extend gains with 484-point rally
KARACHI: The stock market extended gains on the last trading day of the week as investors took heart and were encouraged by subtle gestures of decreasing Pak-India hostilities. The KSE-100 index gained 484.41 points (1.30 per cent) to close at 39,539.02.
Investors who worried over missing out the opportunity to buy stocks at attractive prices went for cautious buying. On the news front, Pakistan set free a captured Indian pilot and handed him over in a gesture for peace to lower the temperatures.
However, figures released by the National Clearing Company of Pakistan showed that all participants did not think it prudent to carry positions over an uncertain weekend. Banks and mutual funds reduced their exposure, individuals remained disinterested while foreign investors sold $2.46 million worth stocks. Insurance companies mopped up all the liquidity with net purchases of $3.93m.
The market started out on a firm footing and with sizeable buying in blue-chip scrips, it touched intraday high by 659 points. The volume declined 14pc to 137m shares, from 159m while average traded value amounted to Rs7.38 billion, from a Rs3.39bn day earlier. Stocks that contributed significantly included Bank of Punjab, Oil and Gas Development Company, K-Electric, Pak Elektron and Pakistan International Bulk Terminal, which formed 21pc of total volume.