After a massive rout of 1,335 points a day ago, stock market recovers 442.27 points (1.13 percent) on Tuesday.
KSE-100 index bounced back by 1.13 per cent and closed slightly short of the intra-day high at 39,602.87.
In early trading, nervous investors extended the previous day’s decline and the index sank another 271 points. But developments such as prime minister Imran Khan’s assertion that the government had asked the State Bank to share information before deciding on major rupee devaluation and finance minister Asad Umer claiming that there was no economic crisis and the financing gap for the current fiscal was already met, helped to calm the market.
Besides, the consumer price index for Nov’18 coming at 6.5 percent below street expectations of 7.27 percent, increase in cement price by PKR 10 per bag to cover the rupee devaluation, strong bouts of buying in banking sector after higher than expected policy rate rise; and overall attractive market valuation after the price erosion enticed investors to go for value hunting.
The KSE 100 index emerged from the red and climbed all the way to intraday high by 497 points.
Sectors that contributed to the upsurge included banks, fertilizer, power, exploration and production. Trading activity in Lucky Cement and United Bank (MSCI EM ousted stocks) reflected that foreign investors who wanted to sell the two stocks had found the exit.
Foreign selling amounted to $3.59 million and rising international oil prices kept E&P shares in demand. Traded volume rose 19 percent to 196 million shares while traded value jumped 70 percent to PKR 11.2 billion.
Major gainers were Hub Power, up 4.38 percent, Habib Bank 2.75 percent, MCB 3.15 percent, Oil and Gas Development Company 2.37 percent and Pakistan Petroleum 2.23 percent, adding 263 points. On the flip side, Pakistan State Oil, down 2.79 percent, Lucky Cement 1.43 percent and Maple Leaf Cement 4.72 percent took away 57 points.