106-point rally ends four-day gloomy spellArchive
KARACHI: The stock market snapped four-day losing streak on Wednesday and gained 106 points (0.27 per cent) to close at 39,506.
The market remained volatile throughout the session and traded between the intraday high of 144.49 points and low of 37 points. Volumes declined by 19pc to 140 millon shares. Trading value also decreased by 6pc to Rs7.6bn over the previous session. Going forward, the market is expected to stay subdued due to the rollover week.
“On Wednesday result-driven activity was witnessed in Hubco and OGDCL, which led the stocks gain in the range of 0.24pc to 1.24pc. Meezan Bank closed in the red, down 0.9pc as the result announcement was below street consensus,” said dealers at Topline Securities.
Analyst Ahsan Mehanti at Arif Habib Corp commented that the stocks closed up led by cement and oil scrips on strong valuations. Trade remained high in second and third tier stocks that are expected to release financial results this week. Surge in global crude prices above $45 a barrel, foreign inflows and higher global equities played a catalyst role in the bullish close.
In the E&P sector OGDC gained 1.17pc contributing 21 points to the index followed by reversal in Engro which recovered 1.30pc.
On the flip side, PPL down 1.16pc, HBL 0.36pc and LUCK 0.47pc dragged the index down by 35 points. Among sectors, autos remained in the limelight despite the absence of any major news flow with GHNL rose 5pc, PSMC 4.15pc and INDU 2.47pc dominating the sector.
Cements remained under pressure with DGKC down 0.56pc, LUCK 0.47pc, CHCC 0.64pc and KOHC 0.80pc. Banks, oil and gas and fertilisers remained mixed throughout the session.
Published in Dawn, August 25th, 2016