Stock market recovers some losses, gains 67 points

KARACHI - The oversold market invited some technical buying at the Karachi bourse on Tuesday, but chief benchmark 100-index never visited near and above the 9,000 points psychological level.
The KSE 100-index recovered 66.59 points or 0.75 per cent to close at 8,938.99 points. Its junior partner 30-index rose 99.62 points or 1.07 per cent and concluded at 9,415.57 points.
In this session, the foreign portfolio investors and local companies were the major buyers with $1.10 million and $1.35 million, respectively. On the contrary, the individual investors continued to remain cautious and disinvested worth $2.44m shares, as per NCCPL.
Furqan Punjani at Topline Securities said: After yesterdays massive selling, market witnessed a shaky session today with volumes on the lower side, mainly on the back of political uncertainty regarding NRO issues. This induced retail and high net-worth clients to offload their positions while institutions took some interest at the lower levels in OMCs, E&Ps and fertilizer sector. Volumes were at 3-week low which reflected investors lack of interest in the market.
Therefore, the day turnover fell to mere 130.58 million shares against 152.04 million of yesterday. Turnover in future market slighted to 2.02 million shares from 2.22 million shares changed hands a day earlier.
In line with market performance, the overall market capitalisation rose by Rs17 billion and stood at Rs2,591 billion.
Ahsan Mahenti at Shehzad Chamdia Securities said that buying activity witnessed in oversold market. Government decision for not presenting NRO in the parliament was taken positive by investors. While rise in international oil prices, recovery in global capital markets and continuing foreign interest in blue chips played a catalyst role in positive activity at KSE, he added.
Hasnain Asghar Ali at Aziz Fidahusein said that the technical recovery, under the lead of main board index heavy weights allowed the benchmark to register triple digit gains in the wee hours. Strategy of 'sell on strength however invited renewed pressure, adding to the panic was absence of buyers at intervals, thereby forcing an intra-adjustment, as almost all the stocks, except for the index heavy weights forced the red numbers to re-emerge.
Unprecedented support in the main board stocks, however, allowed the benchmark to sustain positive numbers for most part of the session, while underlying sentiment stayed negative. Since low multiples and high yields have seemingly became a criteria for the available liquidity, the stubborn attitude will take extra ordinary positive triggers for the likely buyers to surrender to the prevailing rates for the index to consolidate around current levels.
Since group specific stocks and stocks, although trading at high multiples, have tendency of making technical movements stayed negative, trading options stayed limited, thereby restricting activity by day traders.
Easing up of political issues to some extent allowed the index a technical breather, as the initial support in main board stocks have a spill over effect and the index managed a positive yet nervous closing.
With local equity market still highly sensitive to various developments, mainly due to absence of depth, cautious stance has impacted the turnover, thus keeping the chances of price erosion and inflation on higher side, Ali added.
Out of total 389 actives, 195 stocks declined, 172 stocks advanced, while the value of remaining 22 stocks remained unchanged.
Highest volumes were witnessed in JS Company at 18.06 million closing at Rs31.69 with a loss of Rs1.66, followed AH Securities at 17.54 million closing at Rs46.88 with a loss of Rs2.16, Pak.PTA at 5.776 million closing at Rs6.75 with a gain of 12 paisa, Pak.Prem Fund at 4.96 million closing at Rs78.69 with a loss of 69 paisa, and National Bank at 4.76 million closing at Rs78.69 with a loss of 69 paisa.