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.

The suspense over what would come of ‘’Plan B” of the JUI (F) Azadi march also added to uncertainty. Investors also were unsure of continuation of the rally as the heavy gains in recent sessions warranted consolidation. Market participation clocked in at 275m shares, 6pc lower than previous session but the traded value surged 8.1pc to Rs10.8bn, from Rs9.99bn.

Major gainers were Mari Petroleum, higher by 4.2pc, Pakistan Oilfields 1.8pc, Oil and Gas Development Company 0.9pc, Mughal Steels 4.39pc, Amreli Steels 5pc, International Steels 5pc, Nishat Mills 4.8pc, Bank Al Habib 3.9pc, Habib Bank 2.8pc, MCB 0.5pc, Engro Corporation 1.5pc and Hub Power 4.2pc.