KARACHI: The stock market remained volatile throughout the session on Wednesday, with the KSE-100 index inching up 57.40 points (0.14 per cent) to close at 41,544.27.

The longest rally since Dec 1-20, 2016, has witnessed the addition of 3,624 points to the benchmark in the last 10 sessions.

Investors appeared to believe that the market was overbought, which led to profit-taking within the first hour. The market traded range-bound thereafter.

Several market watchers suggested that investors were peeved about Washington suspending $255 million in military aid to Pakistan. Therefore, there was a growing unease about US-Pakistan relations going forward. Yet some market players believed that the bulls were just taking a breather.

Arif Habib Ltd stated that institutional investors with high cash positions started increasing their equity positions post-December closing, especially in cement, banks and fertiliser sectors. This was aided by low valuations, inflationary expectations and volumetric increase, respectively.

The volume edged higher to 234m shares from 229m shares a day earlier. K-Electric was the volume leader, accounting for 47m shares or one-fifth of the day’s turnover. It was in demand on the expectation that Shanghai Electric would soon acquire controlling shares in the power utility.

The traded value declined to Rs9.35 billion from Rs10.52bn a day ago. Major contribution to the index upside, according to Intermarket Securities, came from Oil and Gas Development Company, up 1.45pc, Pakistan Petroleum 1.4pc, Pakistan Oilfields 1.36pc, K-Electric 4.01pc and Sui Northern Gas Pipelines 2.57pc, adding 109 points to the benchmark.

Nestle Pakistan dropped 5pc, Habib Bank 0.9pc and Kohinoor Textile Mills 3.7pc, taking away 62 points from the index.

Analyst Ahsan Mehanti stated that stocks showed recovery on investors’ interest in selected scrips across the board amid speculations about higher global crude prices and upbeat auto, oil and fertiliser sales for October 2017.

Published in Dawn, January 4th, 2018