Despite an early fall, the stock market recovered enough to end the day in the positive territory, defying the trend in other Asian markets.
The benchmark KSE-100 index gained 29 points, or 0.26%, to end at 11,404.17 points on Monday.
All other major Asian markets fell amid global concerns over the US credit downgrade by Standard and Poor’s and Europe’s continuing debt crisis. The Karachi Stock Exchange seemed to be following a similar trend as the market was in a freefall earlier in the day, hitting a low at around 11,000 points.
However, local buying at cheap prices, especially in the fertiliser and banking sectors, helped the market recover by almost 300 points, said Topline Securities equity dealer Samar Iqbal.
Elixir Securities equity dealer Nazim Abdul Muttalib added that banks were buyers, with state funds’ buying helping to further strengthen confidence.
Strong institutional support in blue-chip oil stocks also helped the market to rally, said Arif Habib Investments Director Ahsan Mehanti.
Heightened activity led to high volumes amounting to 106 million shares. The value of the shares traded was Rs4.38 billion.
PTCL led the volume chart with 7.3 million shares at an unchanged price of Rs10.57. Lotte Pakistan was second with 7.12 million shares traded at Rs10.73, a rise of Rs0.04. National Bank was third with 6.98 million shares traded at Rs46.31 after a decline of Rs0.45.
Among active companies, 132 saw their shares rise while 127 declined and 68 remained unchanged.
Foreign institutional investors were net sellers of Rs118.5 million worth of shares, according to data compiled by National Clearing Company of Pakistan Limited.
Published in The Express Tribune, August 9th, 2011.