Trend of short covering led run-up in regional and international equity markets was duly followed by the local bourse, wherein air pocket strength of 1.5 per cent during early trade did find sustainability mainly due to short covering and renewed buying in singled out stocks. Leading from the front was indeed fertiliser stocks of Fauji groups along with group support in other stocks of the sector, while other frontline and expensive stocks stayed glued to the opening levels which were almost 2 per cent higher from the previous close. They got support from the local corporate circles from government treasuries, wherein minimal volume was poured in to keep the early gains intact.
KSE 100 index closed at 11531.24 levels with the gain of 266.21 points, while KSE 30 index bagged 284.81 points to close at 11036.47 levels. All Share index closed 7999.14 levels after gaining 178.46 points. Total 202 scrips advanced 55 declined and 96 remained unchanged out of total 353 scrips traded. “Sell on strength” that stayed a popular strategy kept the local bourse in stagnation mode, positive numbers on board however kept generating the snap rallies in various fertiliser and banking stocks. Recovery in international oil prices did allow sustainability to the Oil exploration stocks, thus allowing the benchmark to attempt recovery of losses incurred a day earlier.
“With a nod of caution intact, mainly due to constant failure of the local bourse the upcoming result season, monetary policy, resolution of circular debt and easing of tension with US, in coming sessions post monetary policy will continue to invite the resident participants, mainly for short term bets,” said Hasnain Asghar Ali at Aziz Fidahusein.
“The sustainability backed by turnover will invite investors from outer orbit, thus recommending selective positions in the stocks away from visible threats, while low volume strength in various stocks struggling to find sustainable multiples mainly due to CGT led curtailment of local strength may however offer trading opportunities for short sellers,” he added.
