Karachi, August 02, 2021 (PPI-OT): View from the desk

A recovery was witnessed today as bulls dominated the trading session leading the index to an intraday high of +453 points before it closed at 47,453 level (up 398 points). However total traded volume declined to 252mn shares from 399mn in the last closing session. WTL (0.9%), HUMNL (6.7%), BYCO (3.2%) and TELE (2.2%) cumulatively contributed 58mn shares to the aggregate volume. On news front, CPI for the month of July-2021 clocked in at 8.40% YoY. Recovery was witnessed in the Cement and Steel sectors where FLYNG (7.4%), KOHC (1.8%), MLCF (1.5%), PIOC (1.2%), CHCC (1.4%), ISL (3.3%), ASL (2.4%), INIL (2.1%) and MUGHAL (2.6%) gained to close in the green trajectory.

The Refinery sector followed the same trend where BYCO (3.2%), ATRL (1.4%) and NRL (1.4%) closed positive. From the textile sector GATM (6.6%), CRTM (7.4%), NCL (3.1%) and NML (2.4%) gained to close higher than their previous day closing. Going forward, in light of COVID concerns, we recommend investors to adopt a Buy on Dips strategy in the Banking, Textile and Cement sectors.