RECORDER REPORT
KARACHI: Karachi stocks showed some recovery Tuesday gaining 99 points after Monday’s panic selling that saw the KSE-100 index nose-diving by 1.78 percent (640 points).
Acting in what equity analysts said a ‘bizarre way’, the benchmark index closed at 35,274.66 points compared to 35,175.49 Monday.
With second- and third-tier stocks leading the day’s rally, the trading turnover dropped to 363 million shares from 571 million. The traded value also contracted to Rs 12.25 billion compared to the previous Rs 12.70 billion.
Of the total 375 scrips changed hands, 225 moved up, 131 declined and that of 19 stayed unchanged. The market capitalisation also settled in the green at Rs 7.616 trillion.
Foreign investors ended the volatile day with net selling of $ 838,045.
“The market acted in a bizarre way in today’s session where the index oscillated between -124 points and +268 points,” viewed Ahmed Saeed Khan of JS Global.
Silk Bank led volumes by counting 21 million of its listed shares traded each priced up at 38 paisa on closing. Other issues doing well included TRG Pakistan 19 million, Jahangir Siddiqui Company 16 million, SSGC 15.9 million, Byco Petroleum 14.4 million, Dewan Motors 14.4 million, Lotte Chemical 14 million, Quice Food 13.9 million, Pace Pakistan 11 million and NIB Bank 10 million shares.
The futures trade declined to 56.6 million shares from 78 million of last trading session in the futures roll-over week.
“Stocks showed recovery led by cement and fertilizer scrips on speculations ahead of earnings announcements due this week,” said Ahsan Mehanti of Arif Habib Corp.
Trade, the analyst said, remained thin in second- and third-tier scrips amid cautious activity in the volatile session.
The day’s only catalyst, Mehanti said, was recovery in global stocks that helped the index ending bullish despite weak oil stocks. The prices of US WTI crude oil fell below $47 a barrel during the trading session.
Topline analyst Mohammad Rizwan attributed the market’s recovery to a smooth roll-over of PAEL and ENGRO.
“Better than expected quarterly results of MEBL and HCAR helped both stocks to close at their upper circuit,” he added.
Investors took fresh positions in the blue-chip stocks like ENGRO, FATIMA, UBL and DGKC that gained 1.21-1.98 percent except for Fatima having closed at its upper limit.
Khan of JS Global said the market was primarily supported by cement and fertilizer stocks as the investors rushed to cherry-pick scrips in the two discounted sectors.
The banking sector remained under pressure throughout the day following decrease in banking spreads, he said. UBL, up 1.03 percent, and MEBL, up 5 percent, were the only exceptions showing better than expected quarterly earnings.
Moving forward, the market is expected to remain positive.
