KARACHI: Bulls returned with a vengeance on Tuesday, helping the market to recover all of the loss suffered the previous day. The KSE-100 index cruised along to gain 343.26 points or 1.17 per cent and close at 29,726.39.
Volumes at 100 million shares though slightly higher than 90m shares that changed hands on Monday, were still poor compared to the recent daily average of 240m shares.
The strong buying by foreign investors of $3.38m worth shares on Tuesday after some selling in the previous two sessions triggered the buying momentum.
Foreign inflow of $2.01m went into the oil and gas sector. The heavyweight sector where almost all 13 listed scrips had shed values on Monday saw recovery in all but one stock on Tuesday.
Mari Petroleum was the star performer which gained Rs16.77 recovering much of the earlier day’s loss of Rs22.05. The stock performed on better-than-expected financial results with earnings growth at 62 pc; the Mari Board also thrilled investors with a surprise bonus issue of 20pc (one share for five held).
“Textile stocks gained following the announcement by the textile minister that the new policy for the sector will be announced immediately after Eid,” said a senior analyst. He added that another incentive for the market was in the end of quarter which led mutual funds to actively participate.
Mutual funds bought stocks valued at $2.01m on Tuesday.
Samar Iqbal, AVP Equity Sales at Topline Securities thought that encouraging response to initial public offering (IPO) of Saif Power positively affected overall market sentiments.