KARACHI: Taking cue from the strong rally on Friday, the stock market extended gains on Monday with the KSE-100 index up by 286 points (0.76 per cent) and closing seen at 38,212.
The market opened positive and remained on the upside for most part after brief period of a dip to intraday low of 87 points. The index reached intraday high of 367 points but retreated slightly before end of trading time.
Contrary to expectations of selling pressure on the start of the rollover week of future contracts, investors were encouraged by the dovish language of State Bank’s monetary statement, which while maintaining status quo at 13.25pc, hinted at the rate reversal cycle likely to start at the beginning of CY20.
The market seems shifting its view on the economy from bad to neutral while the political noise also subsided as investors generally ignored the all-party conference called by JUI-F in the opposition’s anti-government campaign.
Investor sentiments remained neutral in leveraged sectors. Local individuals who are mostly invested in mid-tier cement stocks took fresh positions and were the lead buyers of $2.10 million. Cement shares also remained on the radar on expectations of healthy despatches.
Foreigners were far from active with marginal net sale of $0.38m. The volume declined slightly by 0.8pc to 241.2m shares, as against 243m while traded value increased by 8pc to reach $56.4m. Stocks that contributed significantly included Pak Elektron, Unity Foods, TRG Pakistan, Fauji Foods and Pakistan Stock Exchange, which formed 32pc of total turnover.
Sector-wise, banks, exploration and production, oil and gas marketing companies, cement and refineries saw buying. Upward movement was also seen in autos where most stocks closed higher. Food sector also performed well with majority scrips winding up at upper circuits.