Stocks drift higher on positive budget highlights
KARACHI: Stocks opened positive on the first trading day of the week and the KSE-100 index closed with a gain of 91 points, or 0.19 per cent, at 48,303.
As expected the bulls went on a rampage in early trade tossing the index up by as much as 422 points. But due to massive profit-booking mainly by brokers proprietary trading in the sum of $6.63m together with sell-off by foreign investors, companies and other organisations the index succumbed to selling pressure. Individuals mopped up stocks valued at Rs10.19m and mutual funds bought shares worth $2.49m, which provided some support to the index.
The sell-off on Monday dampened investors’ sentiments which were built over the weekend on a host of positive developments mainly related to the upcoming budget. E&P, refinery, O&GMCs and technology stocks were mauled while glass, fertiliser, textile and cement put up some resistance.
Most automobile stocks were dragged into the red despite the possibility of reduction in CGT and duty reduction for auto manufacturers. The first instalment of payments to 20 independent power producers (IPPs) from the Rs403bn committed under a settlement agreement with 46 IPPs signed in February was completed on Friday. Yet only the PKGP hit the upper circuit while Kapco, Hubco and LPL posted minor gains.
The cement sector sales were recorded at 3.947m tonnes during May, up from 2.634m tonnes despatched year-on-year which saw cautious buying in shares of Flying, Pioneer, Maple Leaf and D.G. Khan Cement. Textile sector remained strong with buying seen in CRTM, Gadoon, and ILP.
Stocks that contributed positively to the index included Systems Ltd (27 points), GHGL (22 points), KTML (19 points), Hubco (12 points) and PTC (11 points). Stocks that lost values included TRG (25 points), PSO (12 points), PPL (10 points), NML (9 points) and HBL (9 points).
The trading volume increased 7pc over the previous session to 936m shares. After several days, HUMNL replaced WorldCall as the volume leader with 118m shares. WorldCall, however, was not far behind with 81m shares.
Published in Dawn, June 8th, 2021