Stocks add 320 points in volatile trade
KARACHI: There was never a dull moment at the stock market on Tuesday where the KSE-100 index after intense volatile trading during the day closed with gains of 320.03 points (0.80 per cent) at 40,328.32.
Weighed down by Monday’s massive fall, investors made a cautious entry and the index opened on a negative note. Selling by companies and broker proprietary trading along with offloading by foreigners at $1.82 million saw the index take a deep plunge of 553 points intraday.
The Musharraf verdict fallout still uncertain and tensions with India reaching boiling point at the Line of Control kept investors on the sidelines with minuscule buying by individuals as no one wanted to hold positions over the national holiday (on Wednesday) in between the next session.
Investors’ nervousness was exacerbated by the rollover week. However, buying was witnessed across the board after midday as institutional investors led by mutual funds and insurance companies jumped in for value buying at lower level.
An International Monetary Fund (IMF) press release affirming “Recent economic developments, decisive policy implementation since June has started to reverse Pakistan’s large imbalances” with other positive statements, provided further reasons for the buyers to accumulate stocks at dips.
Exploration and production and oil and gas marketing companies came in for heavy buying. Other sectors that attracted investors included power, higher by 35 points, cement 32 points and fertiliser 26 points.
The volume increased 32pc to 236.2m shares, from 179.1m while traded value also rose by 25pc to reach $56.5m, as against $44.9m. Stocks that contributed significantly included Fauji Foods, Unity Foods, Bank of Punjab, TRG Pakistan and Worldcall Telecom, which formed 31pc of total turnover.
Scrips that cumulatively contributed towards positive index closing were Oil and Gas Development Company, up 2.6pc, Hub Power 1.5pc, Pakistan Petroleum 1.2pc, Lucky Cement 1.8pc, Engro Corporation 0.6pc, Habib Bank 0.5pc, Pakistan State Oil 1.5pc and Pakistan Oilfields 0.9pc.
Published in Dawn, December 25th, 2019