KARACHI: For the second post-budget session, the stock market was inundated with buyers, mainly in the cement, fertiliser and banking sectors.
All of that saw the KSE-100 index extend gains by 465.15 points (1.33 per cent) and close at 35,403.07.
Investors who had buckled under the pressure of strong rumours of hard hitting budget for weeks prior to its arrival and resorted to heavy sell-off, found that much of the negatives had been already priced in which had sent the shares down to attractive valuations.
On Thursday, after a cautious start in the negative and hitting intra-day low by 80 points, the 100 index took off as investor confidence surged, taking the index to intra-day high by 563 points.
During the session, further dip in the local currency’s value against the dollar gave a cause of concern to investors, but the bulls soon set that aside. The flare up of emotions on the political arena also could not stop value hunters to pick up blue chips.
Mixed reports emanated over the timing of the Market Support Fund taking its entry into the market.
Volumes increased from 150.9 million shares to 154.3m shares (up 2pc day-on-day).
Traded value, however, increased by 14pc to reach $36.8m as against $32.5m the previous day.
Stocks that contributed significantly to the volumes included Maple Leaf Cement Factory (MLCF), Bank of Punjab, TRG Pakistan, K-Electric and Pak Elekrton, which formed 31pc of total volumes.
Sector-wise, fertilisers added 110 points to the index with Engro Corporation being the major mover.
Cements gained on assumption of price increase going ahead. D G Khan Cement, Fauji Cement, Cherat Cement, Kohat Cement and MLCF almost hit their upper circuits.
MCB Bank Ltd and United Bank Ltd were prominent gainers in the banking sector.
Stocks that contributed mainly to the index upside included Hub Power Company gaining 43 points, Engro Corporation 39 points, Engro Fertiliser 37 points, Lucky Cement 32 points and MCB 22 points.
Shares that contributed negatively included IGI Holdings Ltd lost 7 points, Pak Suzuki Motor 6 points, Jubilee Life 5 points, EFU General 4 points and Askari Bank Ltd 3 points.
Published in Dawn, June 14th, 2019
