Institutional buying lifts stocks up

LAHORE - The equity market on Tuesday closed around 4 per cent up on the back of institutional buying ahead of Finance Minister’s visit to Karachi Stock Exchange where he will likely to offer some encouraging steps to boost stocks during his address later in the day, dealers said.
The Karachi Stock Exchange benchmark 100-index closed 3.96 per cent, or 410.51 points, higher at 10,784.81 on turnover of 98.7 million shares.
Naveed Qamar, the privatisation minister who has also held the finance portfolio since a coalition partner quit the cabinet in May, was due to start meeting the KSE board later on Tuesday.
Dealers said that market in anticipation of market fund is rising and it is hoped it will remain on recovery path till creation of the fund. Market closed on very strong note and it appears that this technical correction will continue.  
Dealers said investors are expecting confirmation of a Saudi oil facility to take pressure off Pakistan’s current account deficit and possibly some news about a proposed equity market stabilisation fund.
Earlier this month, the KSE said it was aiming to launch a 30 billion rupees market stabilisation fund following a precipitous fall in share prices.
Trading activity expanded and 306 scrips were traded today. Out of those 228 closed in plus column against 70 minus closings while 8 scrips kept last rates. Volumes once again improved handsomely and 135.254 million shares changed hands in today trading.
Some experts were of the view that sentiment was lifted after the State Bank Governor Shamshad Akhtar made her first visit to the KSE on Monday, dealers said. She said the banks have an aggregate capacity to invest 40 billion rupees in the stock market, if they wish to do so.
Earlier, the market continuing the upward move opened at 10413.85 points putting up 39.55 points. It took small dip and resumed upwards move with increased force. Market kept climbing up and with passage of time bullish sentiments got intensified. After day long upwards journey finally market touched 10795.71 points high but closed bit lower at 10784.81 points after adding 410.51 points in yesterday closing. Free float index opened in plus column and resumed upwards trend. Bulls dominated the market knocking down the bears completely. Free float index closed at 12096.87 points after hitting 12109.94 points high. It gained 537.29 points in today trading. All shares index gained 280.94 points and at closed at 7785.77 points. NIB bank remained on top in volumes with increased activity in which 11.821 shares were traded.
Among the most active companies, NIB Bank rose 10.54 per cent to 10.48 rupees, Oil and Gas Development Co Ltd gained 4.99 per cent to 119.39 rupees, while Arif Habib Securities was up 5 per cent at 136.71 rupees.