Stocks stage 567-point rally after six-day losses
KARACHI: The stock market snapped the six-day losing streak on the first trading day of the week when the KSE-100 index staged an impressive rally to bounce back by 567 points, or 1.24 per cent, and close at 46,375.59.
The index rose by more than 350 points within minutes after opening, the worry over the Covid-19 having eased due to the reduced number of new cases and deaths and the government’s aggressive steps to secure vaccines. The sentiments also received a boost after the Foreign Office offered comforting words that substantial progress had been made over FATF.
Analysts said that the market had priced in the positive fundamentals relating to foreign remittances as well as the expectation of better quarterly results of corporates as the companies which have so far unveiled financial figures posted over 60pc growth.
Cement sector continued to be the darling of investors on scaling dispatches and anticipation of healthy financial results. Maple Leaf, D.G. Khan; Fauji and Lucky gained while Flying Cement closed at its upper circuit.
The E&P sector benefited as international oil prices recovered to pre-pandemic levels. All scrips on the sector ended in green. The textile sector gained in anticipation of the textile policy being approved ANL, NML, GATM and NCL closed in the positive trajectory. .
According to figures released by the National Clearing Company Ltd, foreign investors made a minor buying of $0.09m. Companies and insurance companies decided to take profit while individuals took fresh positions in shares of $3.37m. Banks started the delayed building of new portfolio for the year.
The trading volume increased 10pc over the previous session to 486 shares while the its value also rose by 19pc to reach $156m. Stocks that contributed significantly to the turnover included WTL, MLCF, TELE, ANL and HUMNL, which formed 31pc of all shares traded.
Published in Dawn, February 16th, 2021