KARACHI: Stocks staged partial recovery on Tuesday as the KSE-100 index recouped 517.44 points (1.59 per cent) to close at 33,023.80.
Institutional investors’ in the oversold market, which dived down by 3.05pc a day ago, helped lift the index above the 33,000 level.
The major reason that sent shivers down the spine of market players on Monday was the unconfirmed reports of National Accountability Bureau preparing to begin work on 16 cases referred to it by the SECP.
As the regulators decided to ignore those reports, investors’ sentiments improved on Tuesday and most participants, who had jumped to the sidelines, started a cautious return.
Dealers on the sales desk at Topline Securities stated that the stock recovered “as investors realised that major selling of Monday was owing to local investors rather than foreign selling”.Due to the lingering fear of further fall, the benchmark initially saw intra-day decline by 154 points.
Most analysts pointed out that investors also took fresh positions ahead of MSCI semi-annual review which would be announced by mid-night. The market is expecting positive review for Pakistani bourse.
Analyst Umair Hasan at JS Global observed that the market picked momentum as investors’ interest rose on positive news of accord with IMF for release of seventh tranche worth $506m.
Largely undervalued stocks, after Monday’s meltdown, attracted investor interest with cement stocks remaining strong.
MLCF gains 5pc to hit its upper-circuit while DGKC, FCCL and LUCK ended 3.8pc, 2.2pc and 1.6pc higher. Banks also posted strong recoveries as BAFL, HBL, FABL and MCB ended up by 1.2pc, 1.8pc, 0.5pc and 1.8pc.
Oil and gas displayed slight recovery as POL, PSO and SHEL were up 2.2pc, 2.2pc and 3.3pc.