It seems that local investors remained in a hearty mood on the first trading day after Eid. On massive buying of $35.4 million by foreign investors in banking, exploration and production (E&P) and cement stocks, KSE-100 index closed up by 380 points, which marks an increase of 0.82 %, at 46,712. Nevertheless, it is pertinent to note that KSE-100 index has lost 1,475 points since the start of the current fiscal year.
Specifically, banking and oil shares helped KSE-100 index to experience an upward trend, however, the wider part of the market remained in the negative area mainly because of low volumes.
The market opened positively, however, it soon hit an intraday low by 217 points, because of ongoing futures contract rollover. To be more specific, volumes plunged by 36% to 187 million shares on Thursday from 295 million during the last session. Adding to that, the traded value dropped by 6% to PKR 12.6 billion from PKR 13.3 billion.
“Market witnessed a choppy session in early trading on listless volumes where the Index also entered in the red zone for a brief period. Thereafter, institutional value-buying in major sectors across financials, cements and oils led Index to make an intra-day high above 47,000 level followed by mild profit-taking as the day progressed,” Elixir Securities said in its report.
Arhum Ghous, analyst at JS Global, said that the market witnessed a volatile session with thin volumes of 187 million shares.
For those who are wondering, the major contribution has been made by Habib Bank, MCB Bank, United Bank, Oil and Gas Development Company, Dawood Hercules, Lucky Cement, and Pakistan Petroleum.