Best Stocks to Buy – Stocks stage 621-point rally after MSCI review – Newspaper
KARACHI: Stocks staged a grand rally on the first trading day after the long Eid holidays, underpinned by positive news flow and increased investor participation. The KSE-100 index climbed 621.64 points, or 1.38 per cent, and closed at 45,796.31.
The market opened with gains of 347 points as investors clamoured for stocks that had received favourable reviews in the MSCI rebalancing. Lucky Cement upgraded to EM Standard Index from Small Cap Index came in for heavy buying that lifted the stock price by 4.04pc and added 94 points to the index.
TRG was added to the Small Cap Index that fired up the technology stock to hit its upper circuit with contribution of 135 points to the index. On the flipside OGDC lost 4.6pc of its value which shaved off 65 points from the index, as the stock was deleted from the EM Standard Index.
Individuals were the major buyers of equity worth $8.18m, followed by broker proprietary purchases of $1.88m, with a big chunk of purchases of Lucky and TRG in anticipation of foreign buying post May 28 when the MSCI rebalancing would be effective. Institutional investors did not share the enthusiasm with companies and mutual funds offloading stocks of over $3m each.
Investors were also encouraged by the decline in Covid-19 cases; SBP’s Governor Dr Reza Baqir visualising optimistic GDP growth of 3pc and 4pc for FY21 and FY22, respectively and decrease in the fiscal deficit to Rs1.65 trillion in 9MFY21.
The momentum built up by the MSCI rebalanced stocks kept the investors’ interest alive across the board with cement, fertiliser, textile and food sectors coming up as the major gainers. Scrip-wise the index received support from TRG, Lucky, Unity, MCB Bank and Maple Leaf Cement. Stocks that attempted to pull down the index included OGDC, PPL, HBL, NRL and (BA)FL.
The trading volume jumped 78pc from the previous session to 437.4m shares while the traded value surged 114pc to $133.5m. Stocks that contributed significantly to the volumes included Worldcall, K-Electric, Ghani Global, Telecard and Unity, which formed 44pc of aggregate turnover.
Published in Dawn, May 18th, 2021