PSX surges 1,208 points on value buying

KARACHI: Stocks staged a massive rally on Tuesday with the KSE-100 index recovering 1,208.24 points (4.31 per cent) from the heavy losses suffered earlier in March.

The index closed at 29,231.63, after hitting intraday by 1,311 points. Recovery was underpinned by attractive stock valuations; higher investor participation; recent announcements of tax relief by the government which included relief on account of custom duty, additional duties and general sales tax. Tuesday was also the day of settlement of the rollover transactions, which also passed on smoothly.

Investors also took courage from the approach of April and a possible increase in temperature that many experts believe could help flatten the curve of coronavirus.

However, there was no let-up in selling by foreigners as another big outflow of $8.74 million was noted. Individuals bought equities worth $5.30m to counter foreign selling. The stock values continued to rise without a single dip in the red. Across the board buying was observed in the market, as investors came in to accumulate at attractive levels and volume increased 39pc to 221.8m shares while traded value surged 74pc to reach $44.1m.

Sectors contributing to the performance included banks, rising by 339 points, fertiliser 161 points, exploration and production 125 points, power 117 points and cement 109 points.

Banks and exploration and production witnessed heavy participation where Habib rose, MCB and United In the former and Pakistan Oilfields, Mari, Oil and Gas Development Company and Pakistan Petroleum were all major gainers.

The cyclical steel and cement sectors also managed to reap benefits as Amreli and International Steels closed on their upper circuit while Pioneer Cement, Maple Leaf, DG Khan, Lucky and Cherat ended in green.

Major gainers of the day were Engro Corporation, up 5pc, MCB 6pc, Hub Power 6pc, United Bank 7.5pc, Habib Bank 3.6pc, Lucky Cement 4.7pc and Pakistan Petroleum 3.9pc.