Zubair Yaqoob
Karachi
Market went up Tuesday on the back of banking sector that gained prominence post Eid. Monday’s performance of Index also came largely from Banking sector and Tuesday’s continuation gave investors the confidence to invest more. A couple of factors that helped Investors make a buying stance on Banking sector have been a gradual increase in secondary market PIB yields since last month as well as annual average inflation for FY20 in excess of 10% that diminishes the prospect of further rate cut and therefore a renewed interest in Banking sector. Interestingly, international crude prices were up as well overnight and during today’s market session, however, E&P stocks didn’t pay heed to the price increase and saw selling pressure. Cement sector stocks also showed some signs of revival but remained range bound. Banking sector stocks led the volumes with 50M shares, followed by Technology (24.3M) and Cement (17.3M). Among scrips, PAEL realized trading volume of 14.2M, followed by TRG (12.5M) and HASCOL (12.3M). The Index closed at 34,408pts as against 34,022pts showing an increase of +386pts (+1.1% DoD). Sectors contributing to the performance include Banks (+332pts), E&P (+38pts), Autos (+13pts), Fertilizer -22pts), Pharma (-18pts) and Inv Banks (-14pts). Volumes increased from 198.1mn shares to 220.6mn shares (+11% DoD).
