KARACHI: Local investors seemed to be getting on the front foot in the stock market on Tuesday as uncertainty surrounding the government’s fate faded away.
Stocks followed an upward trajectory from the word go, although the benchmark index traded in a narrow range for most part of the day due to apprehensions about recent heavy foreign investor selling.
Selective buying in cherry-picked stocks, especially steel, oil, financial and cement, however, helped maintain the momentum that allowed the benchmark KSE 100-share Index rise 522.98 points or 1.14% to end at 46,533.43.
According to Elixir Securities, Pakistan equities closed higher on the back of gains in select index names.
“Stocks opened positive, yet the benchmark index traded in a narrow range for most part of the day as participants, perturbed about the recent bout of foreigner’s selling, traded cautiously,” Elixir stated.
“From the outset, steel plays were in the limelight on positive morning news of an increase in customs duty on the import of steel coils while Habib Bank (-3.7%) opened gap down and received a hammering again on foreign selling amidst rumours about the bank’s New York branch getting fined on non-compliance.”
Although the announcement about inflation at 2.91% year-on-year for July during the day failed to bring any excitement, activity improved in the final 90 minutes as local institutions turned selective buyers in oil, financial, cement and select sideboards.
They cherry-picked stocks of Pakistan State Oil (+5%), Oil and Gas Development Company (+2%), United Bank (+1.8%), Engro Corp (+4.2%), Maple Leaf Cement (+3.1%) and DG Khan Cement (+2.1%).
Meanwhile, Synthetic Power (-3.7%), in material notification to the exchange, announced the winding up of its wholly owned subsidiary SPEL Pharmatec.
“Flows will remain crucial as the market gradually builds momentum and the benchmark index retests highs near 48,000,” the report added.
Overall, trading volumes fell to 256 million shares compared with Monday’s tally of 319 million.
Shares of 393 companies were traded. At the end of the day, 274 stocks closed higher, 104 declined while 15 remained unchanged. The value of shares traded during the day was Rs17.6 billion.
Azgard Nine was the volume leader with 21.8 million shares, gaining Rs0.01 to close at Rs15.12. It was followed by TRG Pakistan with 16.3 million shares, gaining Rs1.90 to close at Rs43.72 and Aisha Steel Mills with 15.5 million shares, gaining Rs1.02 to close at Rs21.49.
The post Market watch: KSE-100 rises over 500 points on local institutional interest appeared first on The Express Tribune.