Stocks manage modest gains after three-day of losses
KARACHI: Stocks snapped three-day losing streak on Friday with the KSE-100 index managing to claw up by 81 points, or 0.2 per cent, and settle for the weekend at 48,238.67 points.
The positive contribution to the index narrowed down the weekly loss to just 66 points, or 0.14pc, week-on-week.
Trading was choppy as the index moved narrowly between intraday high and low by 254 and 135 points. Unlike most of the previous weeks, investors were attracted by the first-tier, costly scrips, which was reflected in the investor participation with trading volume down by 33pc over the previous day to 751m shares, while the traded value edged higher by 5pc to $132m.
Commercial banks managed to lead buyers with contribution of 77pc to the index. Cements, refineries, technology, fertilisers and Oil & Gas Marketing Companies saw brisk trading.
The tone of the market was set by the reconciliatory note struck between the government and the opposition to let the budget session roll out without further mud-slinging.
It raised hopes of the market benefiting by the positive measures and incentives proposed by the federal budget 2021-22.
Although the deadlock between the IMF and the government persisted, investors decided to set that aside as a matter which would eventually be reconciled to the satisfaction of both. The outcome of the Financial Action Task Force (FATF) plenary meeting scheduled from June 21-25, which would decide the fate of Pakistan’s removal or retention on the grey list, remained on the investors’ mind, yet the intensity was lost in the face of positive factors.
The opening up of the economy after a miraculous drop in the Covid positive cases also provided relief to investors of the continuation of the recovery in the health of the economy.
According to brokerage Arif Habib Ltd, stocks that contributed positively to the index included Lucky Cement (31 points), NRL (20 points), POL (20 points), TRG (19 points) and FFC (14 points).
Stocks that contributed negatively included HBL (63 points), MTL (15 points), OGDC (14 points), MCB (13 points) and Unity Foods (12 points).
Published in Dawn, June 19th, 2021