KARACHI: Stocks closed flat on Tuesday with the KSE-100 index up by minor 1.64 points to end at 29,095.77. As the benchmark index consolidated above the 29,000 level, trading remained range bound.

Volume improved by 30 per cent with the second-tier stocks commanding much of the turnover. Lafarge Cement held on to its position of top traded scrip with 31m shares changing hands on Tuesday. “Since the market had made strong gains in the last several sessions, consolidation was healthy for the market,” says Raza Jafri, head of Research at AKD Securities.

He said that investors were switching positions to banks and cements. He insisted that the economic indicators were displaying improvement which went well with the foreign investors. The net selling by foreign investors at $1.38m worth stocks on Tuesday and $125m the day earlier was thought to be insignificant.

The upcoming corporate financial results and improved law and order situation would be the key to an extended bull run. Raza thought that the budget would be benign though investors for less than 6 months holding could be impacted with the increase in Capital Gains Tax from 10 to 17.5pc.

Equity research analyst, Rajesh Kumar Maheshwari at brokerage Standard Capital Securities observed that the market was undergoing technical correction. He also pointed to sector switching by investors. Cements were found to be attractive as the country expected consumption of 35m tons this year, up over 33m tons the previous year, he said and added that foreign investors were going for value buying.

Other analysts pointed out that oil stocks witnessed some profit taking on Tuesday; banking gained momentum as investors continued to believe that due to economic recovery banks will be the major beneficiary.