KARACHI: Pakistan Stock Exchange makes a strong comeback after crashing inMarch.
Stocks extended rally ahead of the long weekend, with the benchmark KSE-100Index accumulating over 1,000 points intraday amid surge in market volumes.
Foreign investors remained net sellers of $3.89 million on Wednesday, withmajor selling witnessed in oil and gas exploration ($1.13 million) andfertiliser ($1.51 million) sectors.
According to analysts, the market opened on a positive note primarily onthe back of rising crude oil prices, expectations of a rate cut andrelaxations in virus lockdown.
“Activity was observed across the board, with major contribution from oil &gas stocks; OGDC, PPL and POL hitting upper circuits,” said an analyst atArif Habib Ltd. “Banking stocks remained relatively muted, whereas cement,fertiliser and steel sectors made considerable strides forward.”
Meanwhile, the Pakistan Stock Exchange has sought a relief package from thegovernment to restore investors’ confidence at the bourse. The stock markethas asked for a financial injection from the government’s pension funds,tax incentives to encourage new listings, and reduction in the cost ofshareholding and trading for shareholders.
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The KSE-100 Index stayed in the green zone throughout the session, markingits intraday high at 34,178.57 after gathering 1,019.73 points. It settledhigher by 952.0 points at 34,111.64.
Among other indices, the KMI-30 Index accumulated 2,064.05 points to closeat 55,529.38, while the KSE All Share Index gained 574.58 points, ending at23,937.61. Of the total traded shares, 249 advanced and 73 declined.
It may be noted that after crashing by 23pc in March, the benchmark indexposted a massive recovery of 16.69pc in April 2020.
Sectors that painted the KSE-100 Index green included oil & gas exploration(+308.48 points), banking (+136.90 points) and power generation &distribution (+93.95 points).
