After witnessing a declining trend during the last many sessions, the KSE-100 index on Thursday recovered 95.44 points to close at the level of 11,729.41 points on the back of investors' interest on available attractive level sin the oversold market.
"The investors interest revived and they took fresh positions in the oversold market mainly in some main board stocks in banking, fertiliser, oil and cement sectors," analysts said. Although the market witnessed some pressure after positive opening and the index dropped at 11,571.74 points intra-day low level. However, the investors reviving interest supported the index to not only recover intra-day losses but also close in positive with healthy gains," they added. During the session, the index hit 11,755.15 points intra-day high level.
Trading activity also improved as the volumes at ready counter increased to 50.796 million shares as compared to 33.565 million shares traded on Wednesday. Total market capitalisation increased by Rs 24 billion to Rs 3.052 trillion. Of the total 321 active scrips, 129 closed in positive, 103 in negative while the value of 89 stocks remained unchanged.
Bank Al Falah was the volume leader with 8.073 million shares gaining Re 0.04 to close at Rs 11.99. Investors' interest was seen in the fertiliser sector, as Fauji Fertiliser Bin Qasim, Fauji Fertiliser Co, Fatima Fertiliser Co and Engro Corp surged by Rs 1.34, Rs 7.22, Re 0.46 and Rs 2.66 to close at Rs 58.49, Rs 175.52, Rs 23.03 and Rs 131.27 with 5.891 million shares, 3.317 million shares, 3.070 million shares and 1.791 million shares, respectively. Jahangir Siddiqui Co inched up by Re 0.14 to close at Rs 5.54 with 3.405 million shares. Azgard Nine gained Re 0.11 to close at Rs 3.45 with 3.344 million shares. Lotte Pakistan PTA inched up by Re 0.0.07 to close at Rs 10.17 with 1.510 million shares.
Fresh buying was also seen in the heavyweight E&P sector stocks as OGDC surged by Rs 2.50 to close at Rs 154.55 with 1.463 million shares. Arif Habib Co gained Re 0.50 to close at Rs 29.19 with 1.389 million shares. Rafhan Maize and Bata (Pak) were the top gainers with Rs 84.59 and Rs 24.93 to close at Rs 2684.75 and Rs 770.00, respectively while Nestle Pakistan and Hinopak Motor were the worst losers with Rs 51.04 and Rs 4.32 to close at Rs 2759.94 and Rs 82.12, respectively.
Hasnain Asghar Ali at Aziz Fidahusein Co said that the over sold market witnessed massive short covering, triggered mainly due to corporate influx. The rally initiated by the fertiliser stocks from Fauji group did inspire the entire sector, although various stocks of the sector under threat due to various infrastructural and financial curbs, failed to match the pace of the rally initiator FFC, that registered more then 5 percent increase, from the day's low, while gains in the index heavy weight OGDC kept the index positive thus.
Besides allowing wider activity supported the turnover to inch above 50 million, despite low follow-up during post midday session, mainly due to queued up sellers on strength wherein high priced stocks trading at high multiples and offering low yields stayed the targets, he added.
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