The stock market witnessed a positive trend on Wednesday (today) as it gained 231 points on mutual fund buying.
As per the details, The KSE-100 index recouped 231 points (0.58 percent) and closed at 39,863, after hitting the intra-day high of 389 points.
Raza Jafri, Head of Equities at Intermarket Securities said that the market may have corrected itself as it had already receded from the 42,000 to below 40,000 points level. He said the investors took a cue from rising global markets where hopes ran high after encouraging news about progress on the Covid-19 vaccine.
But, he disagreed with the late reaction of the State Bank of Pakistan’s monetary policy. “The long-term value investors have thought discretion to be the better part of valor and they have stepped aside,” he said. He figured out that the whole market had turned day jobbers.
As per the figures released by the National Clearing Company of Pakistan Ltd, foreign selling was at $0.93m. Local participants bought and sold equity worth small amounts.
Apart from that, positive trading was noticed in banks and oil & gas marketing companies. The cement sector saw selling pressure whereas steel and refinery sectors also saw some recovery. Pakistan Oilfields Ltd, Dawood Hercules, Mari Petroleum, Lucky Cement, and Oil and Gas Development Company remained the major contributors to the index.