KARACHI: Stock market was in bullish frame of mind on Wednesday as the KSE-100 index washed away some of the blood, resulting from the bear rampage a day ago that had dragged the index to a three-year low.
The market remained green on Wednesday with the index making intraday high by 329 points and closing with gain of 100 points (0.28 per cent) at 36,504.25.
Although traders could not advance strong positives that may have lifted the market, investors may have been comforted by the healthy earnings posted by major banks, Habib, United and MCB. Activity picked up pace on the speculation of positive upcoming corporate results, which encouraged participants to build positions early in cement, banks and chemicals.
In the final hours, profit-taking intensified to wipe off all of the intraday gains and index took a brief dip in the red, before value investors entered which provided support to the market.
Institutions avoided going long as uncertainty over the International Monetary Fund package and its conditions and ambiguity on amnesty scheme and the upcoming budget, all went to keep them cautious. Still lacking confidence, many major players said the market trend would have to be watched to ascertain that the upsurge was not a “dead cat bounce”.
The volume declined 3pc to 116m shares, from against 120m while traded value also dipped by 8pc to reach $32.5m, as against $35.4m the earlier day. Stocks that contributed significantly included Lotte Chemical, Bank of Punjab, TRG Pakistan, Pioneer Cement and Maple Leaf Cement, which accounted for 36pc of total volume. Among sectors, banking was the leading gainer with 77 points.
Scrip-wise major contribution to the index upside came from United Bank, higher by 2.92pc, Hub Power 2.55pc, Nestle Pakistan 2.68pc, Oil and Gas Development Company 0.82pc and Habib Metro 3.75pc, adding 130 points. On the flip side, Abbott Pakistan, decreasing by 5pc, National Bank 2.74pc and Fauji Fertiliser Bin Qasim 4.97pc took away 34 points.
