Stocks see off FY20 with 240-point rally

Web Desk –  July 01, 2020

KARACHI: The gory incident of Monday’s terror attack on the PSX already out of the mind, it was business as usual at the stock market with investors churning shares on the last trading day of 2019-20.

The market extended the gains to the second day with the KSE-100 index adding another 240 points (0.70 per cent) on Tuesday to close at 34,422.

With quick bouts of buying and selling, the index moved between the intraday high and low by 243 and 36 points. The market remained generally bullish in line with the trend in global equities. Investors’ sentiments were also bolstered by the approval of the Finance Bill by the National Assembly a day earlier, frustrating any lukewarm effort by the Opposition to block its way.

The volume increased 42pc to 223.3 million shares, from 156.9m shares while traded value also rose by 33pc to reach $44.7m. Stocks that contributed significan­tly included Pakistan Refi­nery (right issue), Sui South­ern Gas, TRG, K-Elect­ric and Hum Network, which formed 37pc of total turnover.

Arif Habib Ltd stated that the trading volumes impr­oved over the day, ”however, the focus was still on marked-to-market valuation of securities in the portfolios.” Among banks, Habib and National recorded high volume, amid small price gains. Comparatively, MCB posted better gains but turnover remained in check.

Cement stocks, which performed well during the past two sessions, were muted. In the exploration and production, Oil and Gas Develo­pment Company gained though Pakistan Petroleum and Pakistan Oilfields came under the hammer as crude in the international market continues to decline on demand worries.

Sectors contributing to the day’s performance included banks, rising by 140 points, fertiliser 30 points, food 24 points, technology 21 points and power 16 points. Scrip-wise, major gains came from banking sector where MCB, United, Habib and Allied cumulatively contributed 133 points.

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