Pakistan News

Stocks add 56 points as probe fears subside

Stocks add 56 points as probe fears subside

KARACHI: Investors confidence in the stock market seemed to return early in the day as the rumours of probe by the regulators simmered down a little. The KSE-100 index recovered another 55.78 points (0.17 per cent) on Tuesday to close at 32,882.02.

The second-last session before Eidul Azha holidays prevented short-term investors to take long positions.

Foreigners took advantage of discounted prices and went into cherry-picking of $1.45 million worth stocks.

Analysts at Topline Securities said that the market gained 325 points intra-day but closed lower due to uncertainty in global markets and fall in European shares.

Volume improved to 137m shares but still remained lower than the three-month average of 302m shares. Value increased to Rs6.8 billion, which also was 41pc lower than the three-month average of Rs11.6bn.

Major activity was seen in mid-cap stocks.

Analyst Owais Ahsan at JS Global also mentioned that the investors were encouraged as the probe fear subsided. The market closed in the green on the back of activity in the cement sector, led by LUCK (up 2.4pc) and DGKC (1.2pc) on prospects of strong earnings growth.

Dealers at Global Securities stated that volumes were mainly driven by main-board stocks. Selling pressure was witnessed in oil stocks (OGDC, PPL) during the last couple of hours, dragging the market down to close near its day’s low.

Individuals booked profits throughout the day, whereas institutions remained cautious with little interest on the buying side.

Analyst Ahsan Mehanti at Arif Habib commented that renewed investor interest in oversold oil, fertiliser and cement scrips played a catalyst role in positive close despite falling global stocks.

Published in Dawn, September 23rd , 2015

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