Stocks drift higher on foreign buying

KARACHI: The stock market remained generally bullish though several spells of profit-taking forced it to move sideways. In the end, the KSE-100 index recorded minor gains of 54.71 points (0.13 per cent) and settled at 41,110.93 on Monday.

The index opened on a positive note and quickly climbed to intraday high by 255 points. But at that point, it succumbed to profit-taking with shares in all sectors receding and the benchmark spiralling downwards to intr­a­day low of 40 points. Inves­tor participation in trading was extraordinarily high.

Foreign investors bought shares worth $0.79 million. Among local participants, buying was spurred by mutual funds and individuals who picked up shares to re-balance portfolios.

The volume at 452m shares, up 89pc, from 239m shares that changed hands on last trading day. Traded value also jumped by 94pc to Rs16.3 billion, from Rs8.4bn on Friday. Leaders were BankIslami, TRG, Pakistan Refinery, Hascol Petroleum and Fauji Cement which together contributed 127m shares to the turnover.

Investor sentiments were driven by the bull run throughout August driving the index higher by 4.7pc (1,852 points). They were also encouraged by an updated International Mon­etary Fund report which projected Pakistan’s GDP growth rate to rebound to 0.4pc in FY20, before gradually going up in FY21 as economy reopens after the new Covid-19 cases receded.

Cement sector was ahead among the gainers with DG Khan, Kohat, Lucky, Fauji and Maple Leaf adding values to their stocks. Pressure was witnessed in the banking space where Habib, United, MCB and JS closed in the negative zone.

All refineries started out in the green, but by end of session, Attock had pulled back but Pakistan closed at it upper circuit regardless of its announced temporary closure after suffering damages due to heavy rains. TRG closed 7.17pc lower on first day after rollover week.