KARACHI: Following a volatile session on Tuesday, the stock market managed to recoup some of the gains from the heavy losses suffered a day ago. The KSE-100 index recovered 267.21 points (0.67 per cent) on Tuesday to close at 39,932.98.

The market took a poor start with initial declines led by the oil scrips, which tracked the drop in international oil prices to a three-month low. The three heavyweights POL, OGDC and PPL lost values.

General despondency on reports of deteriorating external sector; the steep devaluation of the rupee against dollar, the mounting circular debts for the Independent Power Producers (IPPs) and the ambiguities surrounding the political landscape pushed the index deep in negative trajectory, where it hit the intraday low by 335 points.

Market gained momentum in the final hours of trading as news of hike in cement and urea prices induced value hunters to accumulate stocks at attractive valuations. The index recovered the day’s losses and continued to surge hitting intraday high by 347 points, before some profit-selling reduced the day’s gains.

Sectors contributing to the day’s gains included cement adding 97 points, fertiliser 56 point, food 38 points, banks 21 points, chemical 20 point, while E&P wiping out 59 points.

Nestle rose by 5pc, Lucky Cement 3.19pc, Engro Fertiliser 3.14pc, Pak Tobacco 5pc and FFC 1.68pc adding 188 points to the index. On the flip side, PPL lost 1.44pc, POL 1.23pc and Dawood Hercules 2.27pc taking away 62 points.

Cement sector led optimism in the market on the back of news that there has been an increase in prices. Banks were mixed with MCB Bank up 1.17pc, UBL 0.16pc and Faysal Bank 2.66pc whereas Bank Alfalah, Habib Bank and NBP closed in the red.

Published in Dawn, July 18th, 2018