KARACHI: Stocks staged strong rally on Wednesday with the KSE-100 index adding 434.61 points (1.21 per cent) to settle at 36,496.17. It was the first major recovery after the benchmark pulled back by 2.18pc since May 20 when the index had hit its all-time high at 36,848 points.
Volume during the day decreased by 6pc to 206 million shares and traded value fell 22pc to Rs8.1bn. Over 20m shares of Fauji Cement (FCCL) were traded in Negotiated Deal Market (NDM), while the stock closed at its lower limit for the third day in a row.
“Continued interest was seen in Engro Foods (EFoods) and Hascol Petroleum (HASCOL) that gained 4.6pc and 4.8pc, respectively,” said dealers at Topline Securities.
The day’s top contributor was MCB rose 4.07pc adding 67 points towards the day’s rally as the stock likely attracted investors’ interest over its potential acquisition of NIB jumped 12.78pc.
The rally on Wednesday gained additional traction as announced CPI of 3.17pc was lower than street estimates.
Top contributors to gains were FML up 5pc and PPL 3.83pc. PPL was a major index mover on market expectations that the explorer will get better pricing on the extension of lease on its Sui field.
Analyst Ahmed Saeed Khan at JS Global stated that market whispers of reduction in dividend tax in the upcoming budget garnered investor interest. “Today’s rally despite being thin on market participation was broad based with interest in E&P, refineries, OMCs, fertilisers, banks, autos, textile, glass, power and cements. Despite being down more than 1.35pc crude oil, E&P sector remained buoyant, trading up from its previous close,” said analysts at Intermarket Securities.