Stocks recoup losses

Karachi stocks made a strong comeback Tuesday after the KSE-100 index witnessed a record 1,419 points single-day loss Monday. Foreign investment, however, was the day's only negative at the country's largest bourse seeing an outflow of $19.67 million. This takes the total net selling to $68.6 million since Monday last week. The benchmark 100-share index added 698.46 points, 2.11 percent, to Monday's 33,100.34 after peaking to the intra-day high of 33,833.01.
"Stocks showed strong recovery led by select scrips across-the-board," said Arif Habib analyst Ahsan Mehanti. Major support to the index came from cement and fertiliser scrips with DGKC, MLCF, EFERT and ENGRO topping best performers' list by gaining five percent or above. "The index exited its negative trajectory to... close at +2.11 percent with handsome volumes," said Ahmed Saeed Khan of JS Research. Mehanti said KSE indexes witnessed their "historical biggest point" rise after global markets stabilise easing selling pressure in local stocks. Trading turnover surged to 395 million shares from the previous 322 million. The traded value also swelled beyond Rs 19 billion compared to Rs 12.5 billion of last session.
Of the 370 issues traded, 287 gained value while 78 lost and five stayed unchanged. The market capitalisation, which depleted by Rs 270 billion to Rs 7.194 trillion Monday, grew to Rs 7.300 trillion. Recovery in global oil prices, easing political uncertainty and robust earning announcements in the banking sector played a catalyst role in bullish close in the oversold market, said Mehanti.
K-Electric led the day's volumes with 44.5 million trading turnover. The power utility rose to Rs 7.88 after opening the day at Rs 7.40. Other best performing scrips were Jahangir Siddiqui Company 32 million, Pak Elektron 22 million, TRG Pakistan 17.5 million, Byco Petroleum 15.7 million, SSGC 13.5 million, SNGPL 13.2 million, Askari Bank 12 million, Bank of Punjab 11.5 million and Pace Pakistan 10.4 million shares.
Volatility prevailed in the index heavyweight oil sector where, according to Khan, the scrips juggled between the red and green. The banking sector rallied primarily on the back of "better than expected" half yearly corporate results announced by BAHL and AKBL. In the rollover week, trade at the futures market ballooned to 109 million contracts compared to 39 million of last trading day.