Stocks rally 241 points on buying in blue chips
KARACHI: Stocks staged a strong rally on Wednesday that saw the KSE-100 index recoup 241.90 points, or 0.51 per cent, and close at 47,377.38.
Having been dragged down for several days, the shares were ripe for picking and investors mainly the companies and banks swooped to accumulate blue chips on all sectors. The bullish fervour that started at the opening bell carried the index up by almost 500 points.
Traders who were at first surprised by the sudden jump in stock prices, concluded that the investor sentiments were buoyed on the expectation of healthy earnings by key listed entities which helped prop up values. Besides, incentives issued in favour of technology firms and the finance minister’s notice regarding inquiry against stockbrokers also helped develop positive sentiment.
In regard to the economy, strong data reported by the SBP of July remittances at $2.7bn, recording continuing inflow above $2bn threshold in over the past one year was encouraging.
Banks, O&GMCs, power, technology, pharmaceuticals, fertilisers and automobiles sectors performed well. Cements and banks could not keep up the pace of upward movement in stock prices.
Refinery sector also performed well due to anticipation of refinery policy being finally presented for approval of Cabinet. Foreign investors were disinclined to take positions and sold shares worth $0.31m.
The trading volume increased 3pc to 382.6m shares from 370m shares and the value also increased by 29pc to $95.8m from $74m. Stocks that contributed significantly to the volume included GGL, WTL, EPCL, Byco and Telecard, which formed 31pc of total turnover. Technology & communications, chemicals and food & personal care sectors recorded the highest volumes of shares traded.
Stocks that contributed positively to the index included TRG (77 points), Hubco (27 points), Engro Corp (26 points), System Ltd (24 points) and Indus Motor (22 points). The major laggards were Bank Al Habib (15 points), MCB Bank (9 points), Engro Fertilisers (6 points), Cherat Cement (5 points) and Faysal Bank (5 points).
Published in Dawn, August 12th, 2021