KARACHI: The stocks fared better on Monday not because of major positive triggers, but due to some relief provided to investors after political noise muted following Gilgit-Baltistan elections.

The conclusion of Gilgit-Baltistan elections and the end of siege of Islamabad after a settlement was reached between the agitating political party and the government helped improve investor sentiments. The KSE-100 index closed with gains of 142.92 points (0.37 per cent) and settled at 40,652.67.

The market started on a positive note. Investors’ interest also received support from the sharp rise in global markets as hopes were rekindled by a major US pharmaceutical firm, Moderna releasing data that showed 94.5pc efficacy against the Covid-19.

It sparked surge in international oil prices due to speculation in major markets of an uplift in slumping world economies. However, the excitement was diluted by the anticipations over the upcoming decision of the Organisation of the Petroleum Exporting Countries (OPEC) on the demand-supply situation of crude. Some reports suggested the OPEC and its allies were looking at a weaker than previously thought demand situation in 2021, which pulled back the prices of shares on the exploration & production sector.

Moreover, the rise in new infection cases of pandemic in the country kept investors worried over the next phase of lockdowns. Buyers moved cautiously in taking new positions, though investors also decided to hold on to their portfolio which resulted in sharp decrease in traded volumes.

“The State Bank of Pakistan is expected to announce monetary policy in the coming week, which gives investors a reason to switch portfolio positions per their views on policy rate”, said strategists at Arif Habib Ltd.

Banking sector stocks, especially United Bank Ltd (UBL) and MCB Bank Ltd remained strong. Traded volumes stood slashed by 38pc over the previous session to 150.3 million shares while the traded value declined 20pc to $40m.

Stocks that contributed significantly to the volumes include TRG Pakistan, Bank Islami Pakistan Ltd, Soneri Bank Ltd, Pakistan Refinery Ltd (PRL) and Unity Foods, which formed 29pc of total volumes.

Sector-wise, banks, E&Ps and cements were gainers while chemicals and power sector received some setback. Scrip-wise, major positive contributors were UBL, MCB, PRL, Pakistan Oilfields, Pakistan Petroleum, Mari Petroleum and Lucky Cement.

Published in Dawn, November 18th, 2020