KARACHI: The stock market broke a four-day losing streak on Tuesday, finishing over the 41,000-point level after a bearish run caused the KSE-100 Index to lose over 6% in less than a week.
The bullish run was triggered by reports of Rs36 billion making its way into the national kitty due to the tax amnesty scheme, a positive for the country struggling to deal with low tax revenue and fiscal constraints.
Additionally, attractive valuations, upbeat cement sales in May and a calmer political climate played a catalyst role in helping the KSE-100 end higher.
Topline Securities, in its post-market comment, said the rebound is attributable to technical rather than fundamental triggers as continuous fall in the index during four preceding sessions warranted support owing to attractive valuations.
The report stated that key performing sectors during the day included oil and gas exploration companies, oil and gas marketing companies and commercial banks, as these collectively added 133 points to the index gain. “Power generation and distribution and chemicals remained major underperformers withholding 19 points.
“Market participation improved as indicated by 8% increase in both the volumes and value traded,” the report added.
Overall, trading volumes increased to 179.77 million shares compared with Monday’s tally of 166.65 million. The value of shares traded during the day was Rs7.58 billion.
Shares of 358 companies were traded. At the end of the day, 189 stocks closed higher, 139 declined while 30 remained unchanged.
Power Cement was the volume leader with 31.6 million shares, gaining Rs0.08 to close at Rs8.39. It was followed by The Bank of Punjab with 15.7 million shares, losing Rs0.03 to close at Rs12.12 and TRG Pakistan with 5.5 million shares, gaining Rs0.78 to close at Rs28.41.
Foreign institutional investors were net sellers of Rs446 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.