The Karachi stocks market got rid of a days-long bearish trend on Thursday that saw the benachmark 100-share index gaining 95.44 points. The market observers attribute the recovery in the oversold market to the investors’ renewed interest in commodity scrips.
“Stocks showed recovery in oversold market on renewed interest in commodity scrips,” viewed Ahsan Mehanti, a director at Arif Habib Investments.
The day saw the KSE 100-share index recovering to 11,729.41 points as compared to 11,633.97 points of the previous day. The intraday high and low stood, respectively, at 11,755.15 and 11,571.74 points.
The trading volumes also rose by 17 million shares and were recorded at the ready-counter at 50.796 million shares against Wednesday’s 33.656 million. The turnover had dipped to a record low of 28 million during two trading days. The trading value also gained some face and jumped to Rs2.5 billion against Rs1.2 billion of the previous day. The market capitalisation slightly increased and was counted at Rs3.052 trillion compared to Rs3.02 trillion a day earlier. In total 321 scrips were traded, of which 129 gained, 103 lost and 89 remained unchanged. “Sentiment remained bullish led by oil and fertliser scrips,” Mehanti said adding that “(The investors’) expectations loomed over possible gas reserves discoveries in Zin block of the OGDC.”
Bank Al-Falah appeared as a volume leader on the day and counted its traded shares at 8.073 million at the highest per share rate of Rs12.05. The bank’s share price set in the green zone by upping to Rs11.99 after opening at Rs11.95. Other top 10 best performers included Fauji Fertiliser Bin Qasim, Jahangir Siddiqui Company, Azgard Nine, Fauji Fertiliser XD, Fatima Fertiliser Company, Engro Corporation, Lotte PakPTA, Oil and Gas and Arif Habib Company SD. These scrips recorded their traded shares at 5.8 million, 3.4 million, 3.3 million, 3.3 million, 3.0 million, 1.7 million, 1.5 million, 1.4 million and 1.3 million, respectively.
According to analysts, the day witnessed thin activity as the investors remained cautious after global commodities and stocks continued Thursday to fall on uncertain growth prospects in the world’s economic centers namely Europe, United States and China.
“Strong valuations in Pakistan Oil and Gas sector, resumption of gas supply to fertiliser producers and positive expectations for banking sector earnings outlook played a catalyst role in positive close at KSE,” said Ahsan Mehanti. On the future market, the turnover climbed to 8.167 million against 6.429 million of the previous day. The futures scrips that were rated as plus numbered 106, whereas minus scrips numbered 33 and 1 remained unchanged. FFBL-NOV was volume leader of the day with 1.022 million of its shares traded.
