Stocks gain 530 points as crackdown jitters subside


KARACHI: Stocks staged partial recovery on Tuesday with the KSE-100 index regaining 529.69 points (1.61 per cent) to close at 33,474.17.

Although bullishly inclined, the market remained in search of direction as the index posted maximum intra-day gains of 562 points but also dipped into the red by 300 points.

Investors heaved sign of relief as on the closing basis the market seemed to break the two sessions (Friday, Monday) losing spell that had plunged the index by a steep 1,453 points (4pc).

Traded volume increased to 292 million shares compared with 218m shares, while value also rose to Rs13.1 billion from Rs10.6bn traded a day earlier.

Foreign portfolio outflows slowed down to $1.81m. Banks lent support to the market with net purchases valued at $8.80m.

Analyst Ahsan Mehanti stated that the stocks rebound in line with recovery in global markets and as the rumours of regulatory actions on defaulting brokers died down.

Trade was led by oversold blue-chip stocks across the board on speculations ahead of SBP policy rate decision later this month.

Analysts at another brokerage house stated that positivity prevailed in the cement sector as local funds showed interest in the scrips.Institutional support in leveraged stocks and recovery in WTI crude prices played a major role in bullish activity.

Lucky Cement (up by 3.38pc) announced better-than-expected earnings per share and did not announce expansion plans, which rekindled hope that price consensus would continue.

Major gainers on the sector were Cherat Cement (4.83pc) and Fauji Cement (3.48pc).

The oil sector saw positivity after mid-day, with NRL (5pc) and ATRL (3.92pc) were major gainers.

Index heavyweight POL, OGDC and PPL also rallied 1.4pc-2.8pc.

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