The share market staged a smart recovery on Monday on the back of strong buying interest in Adamjee Insurance, Javed Omer Vohra & Co and Arif Habib Securities Ltd, resultantly the index surged by 0.61 percent, amid comparatively low volumes.
The LSE-25 index ended at 4,773.98 points compared with previous closing at 4,744.80 points. Volume declined to 40.923 million shares from 43.482 million of the previous session, registering a fall of 2.559 million shares.
Charged by hectic buying in insurance sector, Javed Omer Vohra & Co and Arif Habib Securities, the market moved in positive zone. However, volume remained on the lower side depicting general investors' disinterest in the market, analysts said.
According to them, following the recent correction, levels had turned attractive, therefore, fresh buying emerged. But on the basis of Monday's recovery it is hard to determine the future direction of the market, they added. If the trend persists for a few sessions then one can hope for a sustained rally, they maintained. Banking sector, including MCB Bank, UBL and Bank of Punjab (BoP) also performed well while the oil sector showed a mixed performance.
Recovery took place following foreign buying and institutional interest, which kept the market in a stable position throughout the day, said Mirza Ejaz Ullah Baig, director, Invest and Finance Securities Ltd.
Javed Omer Vohra & Co and Arif Habib Securities Ltd outperformed and reached their upper cap limit following fresh buying interest, he added. He said the reports of good profits and hopes of announcement of bonus generated interest in Javed Omer Vohra & Co Moreover, there are reports that Arif Habib Securities and Ropali Bank merger plan has been cancelled, which, according to investors, is a positive development, he pointed out.
Similarly, news of alleged embezzlement in Bank of Punjab also stands discounted now and the investors are taking advantage of attractive levels, he said, adding the only threat/disturbing factor is the current political situation, which has shattered the confidence of general investors.
Overall, 144 scrips changed hands on the floor, of which 46 improved their worth, 13 landed in minus zone, while 85 stayed glued to their overnight levels. Among major gainers, Adamjee Insurance was up by Rs 11.20, Javed Omer Vohra & Co Rs 10.85, Arif Habib Securities Ltd Rs 6.15, Pakistan Oilfields Rs 6.00 and UBL Rs 5.30.
In minus column, NIB Bank shed Rs 3.50, PSO Rs 3.20, Mybank and Honda Atlas Cars Rs 0.50 each, while PIAC Rs 0.45. Bank of Punjab and DG Khan Cement were the volume leaders with 4.606 million and 4.385 million shares, respectively.