KARACHI: Bulls continued to dominate the stock market for fifth straight day represented by a sharp spurt of 281.06 points (0.86 per cent) in the KSE-100 index which brought it over 33,000-level and settled at 33,033.32 points. The benchmark has surged 15.22pc from the low of 28,671 points on Aug 19.
The market remained bullish for most of the day as the index touched intraday high by 302 points. Although in their reports, most brokerages avoided mention of the impact of businessmen meeting with the army chief, privately traders confided that investors had received a good dose of enthusiasm. Other reasons that could have sparked investor sentiments included better market fundamentals, stable rupee and fall in 10-year bond yields from 13.50pc to 12.03pc.
On the political front, the chief of Jamiat Ulema-e-Islam (F) announced a march towards Islamabad on Oct 27 which some market participants thought could pose sell-off pressure in the upcoming trading sessions. Others expected the government to be able to ride out the challenge.
The volume declined 31pc over the earlier day to 261 million shares while trade value fell 16pc to Rs7.47 billion. Foreign investors added equity worth $0.32m to their portfolio while individuals bought shares worth $1.25m. Insurance companies deciding against carrying positions over the weekend and sold shares of $1.79m.
Cement sector again remained in the limelight while exploration and production stocks also gained as oil prices edged up in the international market. Mixed sentiments were noted in commercial banks.
Major contribution to the index upside came from Oil and Gas Dveelopment Company 2.11pc, Hub Power 1.46pc, National Bank 4.99pc, Sui Northern Gas 4.47pc, Engro Corporation 0.85pc, Searle Company 5pc, Pakistan Petroleum 0.81pc, Bank Al Habib 1.22pc, Pakistan State Oil 1.94pc and Engro Fertiliser 1.37pc.
Published in Dawn, October 5th, 2019
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