KARACHI: Stocks bounced back on Wednesday to cover some of the losses after a massive plunge of over three per cent in the previous session. The KSE-100 index recovered 287.51 points (0.65pc) to close at 44,186.
The traded volume was down by 2pc over the earlier day to 187 million shares whereas the traded value was up 13pc to Rs10.3 billion, signifying that big market capitalisation stocks attracted buyers.
The volume leaders remained the second-tier stocks, which included ANL, ASL and TRG, contributing 38m shares to the total as ‘individuals’ (mainly retail investors) changed places with the foreign investors.
In contrast to Tuesday, individuals took faith and bought stocks worth $3.8m. Foreigners, who had seized the opportunity to buy stocks at attractive prices in the bloodbath a day earlier, came in to book profit with net sale of $3.8m.
Topline Securities identified five main contributors to the index rise as SNGP which went up 4pc, Engro Corp 2.2pc, HBL 0.9pc, OGDC 1.7pc and DAWH 3.4pc, adding 146 points. On the other hand, Lucky Cement was down 1.6pc, PPL 0.6pc, SEARL 2.3pc, POL 1.3pc and EFoods 5pc, taking away 69 points.
“The continuity of political uncertainty has resulted in investors switching from growth stocks to value plays,” asserted analysts at JS Global.
Despite increase in the overall OMC sector’s prices, Shell closed flat as its earnings were unveiled at Rs21.85 per share for first half.
Commercial banks’ heavyweights MCB was up 0.96pc, HBL 0.81pc, UBL 0.18pc, and NBP 1.45pc, contributing 53 points to the index.
Steel stocks, which had taken heavy beating on Tuesday, recorded across-the-board increase with ASL up 1.90pc, ISL 4.13pc, INIL 4.98pc, recovering on attractive valuations.
Published in Dawn, August 17th, 2017
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