KARACHI: Stocks recovered some of the losses on Tuesday as the KSE-100 index recouped 99.17 points (0.28 per cent) to close at 35,274.66.

Strong volatility marked the market where the benchmark index moved between the intra-day gain of 268 and loss of 124 points.

Market participants cited a pause in heavy selling in emerging markets, which raised confidence among local investors. The weakness of international crude prices, which sank below $47 a barrel (WTI), was ignored by the market.

Volume declined by 36pc to 362 million from 571m shares a day earlier, but the trading value slipped just 4pc to Rs12.2 billion from Rs12.7bn as some of the third-tier stocks were replaced by moderately priced scrips on the volume leaders’ list.

The highest turnover remained in Silkbank (R) in which 21m shares chan­ged hands, although the price was a minuscule 38 paisa per share.

Foreigners sold stocks worth $0.84m, with outflow of $1.8m from fertilisers arbitraging into the banking sector.

Institutional investors stood on the sidelines waiting for better bargains, though mutual funds offloaded equity worth $7.17m, which indicated fund managers’ rush to cover their ‘capital protected funds’ as they were spooked by heavy selling in local and foreign markets, particularly the crash of Chinese capital market on Monday.

Some analysts said that the partial recovery was on the back of smooth roll-over of PAEL and ENGRO. “Better-than-expected quarterly results of MEBL and HCAR helped both stocks to close at their upper-circuit,” stated dealers at Topline Securities.

Investors took fresh positions in some blue-chip stocks like Engro Corp, Engro Fertiliser, United Bank and DG Khan Cement.

Analyst Ahmed Saeed Khan stated that the market gained support primarily from cements and fertilisers.

Published in Dawn, July 29th, 2015

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