KARACHI: Following the beating on Monday, the index recovered sharply and settled over 33,000 as value buyers took advantage after the panic selling on the opening day of the week.
Reported MSCI re-classification and clarity on rumours related to broker investigations helped recovery with wider market attracting fresh liquidity.
At close on Tuesday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 1.59% or 517.44 points to end at 33,023.80.
According to Elixir Securities analyst Faisal Bilwani, most volumes went through in small and mid-cap names with retail investors including day traders hunting for opportunities for a quick buck while reports of foreign buying in index names also did the rounds.
“Politics went off the radar for the day while IMF’s nod for loan installment kept macros in the limelight and brought in support at lows,” he added.
“We see a volatile market ahead of the weekend monetary policy while rumours related to SECP investigations and developments on political front and budget will be closely tracked by investors in absence of any immediate trigger,” said Bilwani.
Meanwhile, Topline Securities analyst Mohammad Rizwan said investors took fresh positions ahead of the MSCI review.
“Cement stocks recovered sharply, Maple Leaf Cement Factory Limited (MLCF) closed up 5%, Dera Ghazi Khan Cement (DGKC) gained 4%, Fauji Cement Company Limited (FCCL) rose by 2.5% and Lucky Cement (LUCK) up by 1%,” said Rizwan.
“Oil stocks also rallied as Pakistan Oilfields Limited (POL) increased by 2.7%, Pakistan Petroleum Limited (PPL) rose by 1.7% and Oil and Gas Development Company (OGDC) gained by 1.4%,” he further added.
Trade volumes fell to 176 million shares compared to 235 million on Monday.
Shares of 339 companies were traded on Tuesday. Of these, 231 companies closed higher, 85 saw a decline and 23 remained unchanged. The value of shares traded during the day was Rs10.3 billion.
Pak Elektron was the volume leader with 20.4 million shares, gaining Rs2.54 to close at Rs60.68. It was followed by Byco Petroleum with 16.6 million shares, gaining Rs0.32 to close at Rs12.97 and Fauji Cement with 14 million shares, gaining Rs0.67 to close at Rs31.78.
Foreign institutional investors were net sellers of Rs170 million worth of shares during the session, according to data compiled by the National Clearing Company of Pakistan.
Published in The Express Tribune, May 13th, 2015.
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