KARACHI: Stocks continued their winning streak for sixth day on Monday supported by massive rise in investor participation. The KSE-100 index added 151.39 points (0.43 per cent) and settled at 35,202.77.
Asian equities rose along with US and European markets which provided an impetus to the local bourse to continue head north. After an initial dip into the red by 49 points, buying by individuals mainly in the second-tier stocks saw the index bounce back in the green.
Price gains in the exploration and production, cement and pharmaceuticals which contributed 40, 34, and 26 points to the index gains, helping market touch intraday high by 187 points.
Besides the sector-wise incentives to buy, other indicators also pointed to a quick bounce-back in economy. Investors were greatly relieved by a steep dip in new infection from the Covid-19, almost an unbelievable drop in fatalities and recoveries surpassing active cases.
In Asian markets, crude futures were reported mixed during mid-morning trade on Monday, but a kickstart was expected which increased investor appetite for E&P stocks as Pakistan Petroleum; Oil and Gas Development Company and Pakistan Oilfields closed in the green.
Cement rose higher as investors saw trading opportunity in selected stocks. In pharma Glaxo, AGP and International Brands saw buying activity. Fertiliser, which had been a big gainer last week, failed to perform on Monday.
Foreigners sold shares worth $1.84 million, which were picked up by individuals and investment companies. The volume surged 89pc to 332.2m shares from 175.7m while traded value also rose 66pc to reach $67m as against $40.4m.
Major contribution to the index upside came from Pakistan Petroleum, higher by 1.2pc, Pakistan State Oil 2.2pc, Indus Motor 4.7pc, Mari Petroleum 1pc, Oil and Gas Development Company 0.5pc and Habib Bank 0.4pc. Besides, E&P, cement and pharma, oil and gas marketing companies added 26 points and autos 18 points to the upside.
Published in Dawn, July 7th, 2020