KARACHI: Bulls ruled the roost at the stock market on the first trading day of the week, represented by healthy buying that saw the KSE-100 index make intraday high of 400 points.

The index levelled off some gains in late trading, but still closed up by 182 points, or 0.40 per cent, at 46,097. Although the benchmark met tough resistance at 46,215 points, the market cheered the closing above 46,000 level.

Investors’ sentiments remained upbeat on the statement of Federal Energy Minister Hammad Azhar that the projected GDP growth was 3.94pc for the current fiscal year against 0.47pc contraction in FY20. The revision was thought to be based on revival of industrial activity. Bullish trend was also supported as the word went around of the government drafting an industrial and people-friendly budget. Various official statements suggested that the personal income taxes and power tariffs might be kept unchanged. The Monetary Committee meeting scheduled for May 28 was seen as a non-event with expectations of the benchmark policy rate remaining unchanged at 7pc as the inflation expectation was thought to be within the target of the SBP.

The rollover week did not turn out to be a major deterrent for the enthusiastic investors. The technology stocks which had remained under the limelight during the previous roll-over weeks, remained subdued which also provided relief to the investors that the roll-over would be smooth going forward. Some profit-taking was observed during the trading session as the Sindh government announced continuation and even stricter lockdown restrictions for two weeks due to spike in Covid case in the province.

Sectors contributing to the performance included cement (87 points), banks (42 points), autos (35 points), fertiliser (26 points) and chemical (22 points). The scrips that helped index to rise included Systems Ltd (24 points), Millat Tractors (23 points), PPL (21 points), MLCF (21 points), and Colgate Palmolive (20 points).

The trading volume increased 8pc over the previous day to 766.6m shares. The traded value improved by a nominal 1pc to $129.7m.

Side-board items Worldcall Ltd, Silkbank, Summit Bank, Hascol and FFL contributed 51pc to the total turnover. Foreign investors sold shares worth $4.313m and companies also decided to sell at the current levels. But banks mutual funds and individuals mopped up the liquidity. Brokers were leading purchasers of shares valued at $2.91m.

Published in Dawn, May 25th, 2021