Stocks recover 690 points on mutual fund buying
KARACHI: Pakistani shares snapped a three-day losing streak on Tuesday as value-hunting by mutual funds helped the benchmark index regain its lost ground despite aggressive selling by foreigners, banks and individuals.
Ahsan Mehanti of Arif Habib Corporation attributed the bull’s comeback to receding Consumer Price Index-based inflation in September to a 44-month low of 6.9 per cent, boosting the market expectations of another substantial reduction in the State Bank of Pakistan’s (SBP) policy rate in the next review.
Other factors that encouraged an across-the-board buying spree were the fifth straight fortnightly cut in the petrol and diesel prices and surging SBP reserves after the inflow of the first tranche of $1.03bn from the International Monetary Fund under the new bailout programme contributing to the bullish close, he added.
Topline Securities said bulls dominated the session, with the KSE-100 index reaching an intraday high of 866 points at 81,980.37. However, it settled at 81,804.59 points after adding 690.39 points or 0.85pc day-on-day.
Key drivers of the market rally included heavyweights such as Hub Power, Mari Petroleum, Oil and Gas Development Company, Bank Al-Habib, and Pakistan Petroleum, collectively contributing 533 points to the index. Conversely, Bank Alfalah, Habib Bank, Pakistan Oilfield, United Bank and Meezan Bank pulled shaved off 170 points.
The trading volume was up 20.49pc to 359.08 million shares while the traded value rose 21.67pc to Rs17.16bn day-on-day.
Stocks contributing significantly to the traded volume included Fauji Cement (29.12m shares), Hub Power (19.62m shares), WorldCall Telecom (19.05m shares)), Kohinoor Spinning Mills Ltd (15.72m shares) and K-Electric (11.49m shares).
The shares registering the most significant increases in their prices in absolute terms were Unilever Foods (Rs194.94), Hallmark Company (Rs78.42), Hoechst Pakistan (Rs58.17), Service Industries (Rs52.87) and Sazgar Engineering Works Ltd (Rs26.25).
The companies that suffered major losses in their share prices in absolute terms were Pak Engineering (Rs55.00), Sitara Chemical (Rs14.92), Ismail Industries (Rs10.82), Siemens Pakistan (Rs8.75) and Pakistan Oilfield Ltd (Rs7.56).
Foreign investors remained net sellers as they offloaded shares worth $4.98m. However, mutual funds picked up shares worth $9.07m.
Published in Dawn, October 2nd, 2024