KARACHI: Stocks turned bullish on Wednesday as the KSE-100 Index rose nearly 361 points in intra-day trading, bringing an end to a three-day losing streak.
After opening negative for a brief period, the index picked up on the back of buying interest of investors. The Supreme Court’s approval of a tax amnesty scheme also helped propel the index upwards.
Investor sentiments improved on expectations that the amnesty scheme would generate large capital inflows into the market.
Despite brief fluctuations, the index closed in the green. Activity was mainly concentrated in auto stocks that outperformed in the wake of monthly sales data. Financial, exploration and production and fertiliser stocks also contributed positively to the index.
At close, the benchmark KSE 100-share Index recorded an increase of 278.6 points or 0.64% to settle at 43,507.50.
JS Global analyst Maaz Mulla said Pakistan equities closed positive with the benchmark index settling up at 43,508.
“The index hit an intra-day high of 361 points and a low of -12 points in the trading session,” Mulla said.
Financial and energy stocks pushed up the index whereas cement stocks were in the red. Major heavyweights namely Habib Bank (+0.7%), Oil and Gas Development Company (+0.8%), United Bank (+0.9%), Engro (+0.5%), MCB Bank (+0.4%), Pakistan Oilfields (+0.9%) and Fauji Fertiliser Company (+1.5%) cumulatively contributed +101 points.
Traded volumes fell 19% to 112 million shares while traded value decreased to $47 million. Top volume stocks were The Bank of Punjab (+2.3%), Meezan Bank (+5%) and K-Electric (-1.9%).
Auto sales data was released which showed 5% year-on-year growth in sales for May 2018 while sales for 11MFY18 jumped 21%.
Ghandhara Nissan (+5%) closed at its upper circuit while Pak Suzuki Motor Company (+1.6%) and Indus Motor (+0.6%) also remained positive.
Moreover, the National Tariff Commission imposed definitive anti-dumping duties on colour-coated coils in the range of 5.36% to 14.24% on imports from China and South Africa.
International Steels (+4.4%) and Aisha Steel Mills (+6.4%) closed positive in the steel sector. Among financial stocks, Habib Bank (+0.7%), United Bank (+0.9%) and MCB Bank (+0.4%) were in the green zone.
Mulla expected the market to remain volatile and choppy with flows from local and foreign institutions guiding direction.
Overall, trading volumes decreased to 111.9 million shares compared with Tuesday’s tally of 137.8 million. The value of shares traded during the day was Rs5.7 billion.
Shares of 332 companies were traded. At the end of the day, 197 stocks closed higher, 113 declined while 22 remained unchanged.
The Bank of Punjab was the volume leader with 10.05 million shares, gaining Rs0.29 to close at Rs13.15. It was followed by Meezan Bank with 7.6 million shares, gaining Rs3.9 to close at Rs81.98 and K-Electric Limited with 7.1 million shares, losing Rs0.11 to close at Rs5.57.
Foreign institutional investors were net sellers of Rs323.03 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.