Stock Market had a strong positive today, bouncing back from massive foreign selling seen yesterday. Although the number of cases rose sharply, interest was seen across the board as value hunters search for bargain. Undoubtedly, equities as an asset class look quite attractive for medium & long term investors given the low interest rates. PM’s hint of softening of terms with the IMF in a new package imply growth would take precedence over conservative stabilization policies. This was expected after Hafeez Shaikh’s departure.
Positivity was witnessed primarily in Tech, Cements, Steel & Chemicals sectors. Whereas, stocks such as, Pakistan Refinery, Byco Petroleum & Kapco closed negative. KSE-100 closed up by 787.78 points to 44,741.36 levels with 186.04mn shares traded. Highest activity was recorded in GGL (+7.24%) with 35.9mn shares traded, TRG (+7.5%) with 28.7mn shares and BYCO (-0.7%) with 26.0mn shares traded.
G-20 has agreed on extending debt relief. That’s a comforting news for Pakistan. Similarly, the IPO of Service Global Footwear has received tremendous response and subscribed at the peak rate. There is a lot of liquidity, optimism & want for good quality stocks. We expect market to remain greenish to flat tomorrow as potential rise in number of cases over the weekend could dampen the positivity, temporarily.