Stocks add 231 points on cherry-picking
KARACHI: Stocks climbed for the third day in a row with the KSE-100 index adding 231.06 points, or 0.51 per cent, to settle at 45,174.67.
Although investor participation was low, institutions decided to take long positions on hopes of further upsurge post-Eid holidays. They were encouraged by the statement of Finance Minister Shaukat Tarin who declared that Pakistan would request IMF to review its position as there was no room to increase power tariff and taxes. The finance minister also reiterated his stance on focus towards growth.
Value hunters put money in cements, banks, fertilisers, refinery, tobacco and technology scrips. Speculators took interest in off-main-board items Worldcall, Telecard and took fresh positions in the technology favourites, TRG and Netsol, despite the fact that those were pummelled in the recent days. The market opened on a positive note and took a slight dip of 54 points.
Analyst Ahsan Mehanti said that the mid-session pressure remained on rupee instability and 21.6pc year-on-year surge in trade deficit to $23.8bn for July-April.
However, higher global crude prices, falling government bond yields and speculation on likely resolution of circular debt crises upon payment to IPPs, helped to bring back positivity to the market.
Major contribution to the index came from Lucky Cement, TRG, Bank Alfalah, PAKT and Kapco, as they cumulatively pushed the index up by 162 points. On the flip side, shares that contributed negatively included UBL (20 points), EPCL (13 points), POL (12 points), Mari Petroleum (10 points) and PPL (10 points).
The trading volume declined 6pc over the previous day to 245.6m shares. The traded value also plunged 36pc to $62.1m. Worldcall, TRG, Telecard, Unity Foods and Ghani Global contributed 53pc to the total turnover.
Among participants, foreign investors generally remained on the sidelines while individuals; companies and ‘other organisations’ bought shares. Mutual funds attempted to drag the market down with net sale of shares worth $2.22m.
Published in Dawn, May 7th, 2021