Stocks resume bull run with 401-point rally
KARACHI: Bulls resumed their run up on Wednesday after a day’s breather. The KSE-100 index recorded gains of 401.40 points (1.09 per cent) and crossed 37,000-level for the first time in six months (last seen on April 30), to settle at 37,166.96.
The market also witnessed traded value at Rs10.8 billion which was the highest for 2019. But almost all of the gains emanated from massive buying by mutual funds to the tune of $7.42 million, which a manager said represented investment by a large local pension fund.
Other than that, foreigners bought stocks worth $1.80m. But local institutions including banks and insurance companies as well as individuals reaped the benefits through profit booking at high levels. Overall, the market trend remained volatile as the index opened weak and sank to intraday low of 285 points in the red.
Later as buying erupted from a couple of major funds that received pension investments, the index bounced back and surged to intraday high by 524 points. Although investors remained positive based on improving macros and State Bank’s fresh initiative to ease business terms and boost exports, the political scene remained murky since the market wondered if the former PM would take the granted relief to seek treatment abroad on provision of surety bond.