Stocks recover

The Karachi share market rebounded sharply Tuesday because of what analysts said recovery in global equities and oil prices. Showing volatility though, the KSE-100 index sprang back by 530 points to close at 33,474.17 compared to 32,944.48 Monday. "Volatility prevailed in Tuesday's session as the index jumped 200-300 points in and out of the green zone over half a dozen times," said JS analyst Ahmed Saeed Khan.
The benchmark index hit the intraday high and low of 33,506.00 and 32,644.52 points, respectively. "Stocks showed strong recovery amid recovery in global stocks and clarification on prevailing rumours on regulatory actions on defaulting brokers," Ahsan Mehanti at Arif Habib Corp. Trade, he said, was led by oversold bluechip stocks across the board on speculations ahead of State Bank's policy rate decisions later this month.
"Institutional support in leveraged stocks and recovery in WTI crude prices near to $46/barrel played a catalyst role in bullish close," said Mehanti. Trading turnover surged to 292 million shares from Monday's 218 million. Traded value also appreciated and stood at Rs 13.13 billion compared to Rs 10.64 billion. The market capitalisation accumulated to Rs 7.23 trillion. Foreign investment remained in red marking net selling of $1.176 million. Dewan Cement was most-traded scrip with 22.9 million turnover. The cement manufacturer rose to Rs 17.88 from Rs 17.31 at opening. Other issues which performed well were Pak Elektron 19 million, SNGPL 14.4 million, Dewan Motors 14 million, Maple Leaf Cement 13 million, K-Electric 11.6 million, SSGC 11.5 million, Pace Pakistan 11.3 million, TRG Pakistan 11.1 million and 9.4 million shares. Futures trade also grew to 60 million contracts from the previous 28.3 million. Oil sector was seen positive after mid-day as international crude oil prices recovered by one percent. NRL was the major gainer and gained five percent. "Moving forward, we expect the volatility to persist till the announcement of the monetary policy which might prove to be a confidence booster for the investors," said Khan.