KARACHI: Stocks recovered on Thursday to stage a sharp rally with the KSE-100 index recording gain of 223.42 points, 0.66 per cent, to 33,942.28.
Foreign investors continued to book profit with net sale of $0.63 million worth stocks, increasing the month-to-date net sales at $57.84m. Among local participants, banks resorted to heavy selling of stocks valued at $7.75m, though it was cancelled out by purchases of $3.79m by companies and $4.65m by individuals.
The heavyweight oil and gas sector saw decline in stock prices of POL, PPL and PRL.
Samar Iqbal, VP Equity Sales at Topline Securities pointed out that market volume increased by 46pc to 240m shares, while trading value also rose by 65pc to Rs12.7 billion. He observed that investors’ sentiments improved amid rally in Engro and cement stocks.
Institutional support was seen in the cement stocks, which helped the sector to recover.
Analyst Fahad Hussain Khan at brokerage Adam Securities stated that the buying in Engro stocks set the tone of market. Regained interest in cement and auto stocks kept the index up.
Oil stocks turned red after oil prices slipped from over $53 to $50 in international market.
Ahsan Mehanti at Arif Habib Corp stated that the stocks showed recovery led by oversold scrips across the board on strong valuations.
Analyst Mohammad Mubeen observed that the cement sector recovered from its recent profit-taking phase with CHCC, DGKC, FECTC, MLCF, PIOC and LUCK witnessing a rising trend.Fall in T-bill yields in auction on Wednesday, record earnings in cement, auto and banking sectors and higher sales data in Oil Marketing Companies (OMCs) in January 2015 played a catalyst role in bullish activity at KSE.