Stocks gain 190 points

KARACHI: The stock market remained range-bound throughout the session on Tuesday, though the KSE-100 index finally managed to gain 189.75 points (0.61 per cent) and settle at 31,222.74.

The index moved between intraday low and high by 362 and 92 points in a market where mainly day traders were involved in alternate bouts of buying and selling, yet unable to churn out much of a volume.

Investors were biting their nails, awaiting the prime minister’s decision on the lockdown and resumption of industrial and trade activity. “The corporate productivity and earnings forecasts depend on the directive,” said an industrialist.

The announcement came in the evening where the government extended the lockdown for two more weeks. “But it will be a partial lockdown,” the PM added. He said that the government would issue a presidential ordinance on Wednesday to provide an unprecedented stimulus package to construction. Shares in the cement sector after an early retreat took a huge jump to close or near their upper circuits.

However, the expected increase in trading activity in the oil sector did not materialise, since despite a production cut by Opec, there seemed to be little effect on international prices as the pandemic continued to suppress demand, which prompted investors to book profit in exploration and production and oil marketing companies’ scrips.

Other than that, there were some positives that ought to have rejuvenated investors’ interest in equities. The Asian Development Bank (ADB) agreed to lend $800 million to Pakistan to help the country combat challenges posed by the novel coronavirus.

Foreigners and mutual funds offloaded equities which were picked up by individuals and insurance companies. The volume dipped 15pc to 130.4m shares while traded value fell 16pc to reach$28.8m.

Textile remained upbeat due to the government’s consideration on following smart lockdown/partial opening up of businesses, which meant the major export earning sector providing huge employment was thought to benefit. Stocks contributing most to the index included Lucky Cement, up 2pc, MCB 0.7pc, Pakistan Oilfields 0.2pc, Engro Corporation 0.6pc, Habib Bank 0.5pc and United Bank 0.3pc.