Karachi: The stock market made strong rebound on Monday with the KSE-100 index up by 307.19 points or 1.07 per cent to close a stone’s throw away from the 29,000 level, at 28,999.03. The start was chaotic as dust on the political scene dimmed investors view, which pulled back the index by nearly 200 points.

But with corporate fundamentals intact and the index having lost over 1,000 points last week, the investors decided to buy value stock at dips. This saw the stocks switching to green from red all across the board.

Foreign investors were net buyers of $1.61 million worth stocks on Monday. Local institutional and individual investors moved cautiously but a few mutual funds offloaded shares valued at $2.48m to readjust portfolio ahead of the year end, as well as to meet redemptions.

Slight commotion was created after a political leader’s arrival from Canada. But the event, which had all the ingredients of triggering a break down in law and order situation, passed on peacefully and dissipated investors’ nervousness.

Analysts at KASB Research stated that the index lost ground in the earlier part of the session, but then quickly recovered its losses and rose towards 29,000, closing in green.

The index could now continue its upside towards 29,300-29,400 as it has formed a strong base at 28,500-28,600 area.

Ovais Ahsan at JS Global commented that the market bounced back midday. MCB Bank was up 2pc and led the banking sector gainers while Pakistan State Oil added 3.35pc, the leading gainer on the oil and gas sector.

“The market is expected to recover in tandem with a cooling off of the political situation as PPL secondary offering will invite investor interest following the successful off loading of the government’s holding in UBL,” the analyst contended.

Published in Dawn, June 24th, 2014