KARACHI: Stocks managed to recover on Tuesday after closing in the red for three consecutive previous sessions. The KSE-100 index gained 119.49 points (0.26 per cent) to wind up at 45,801.73.

The market kicked off on a negative note, extending the previous day’s declines. Exploration and production (E&P) and banking sector dragged the index down to intraday low by 197 points. However, it rebounded after midday as investors were encouraged by the announcements of some healthy financial results and the belief that the market was oversold. The index made intraday high by 200 points.

Besides better than expected performance from Fauji Cement, a surprise cash dividend and talks of further increase in cement prices fuelled investors’ interest in the sector. The market sentiments also improved as government was moving ahead to get the syndicated financing of $450 million.

Sector-wise contribution to the index included cement, increasing by 48 points, chemical 30 points, pharma 22 points, oil and gas marketing companies 18 points and food 15 points. E&P sector shed 32 points mainly as Oil and Gas Development Company conceded another 1.5pc of the value following its block placement on Monday.

Analysts at Arif Habib Ltd stated that the early hours of trading saw attrition in large-cap banks on the assumption of rejection by Court of the penalty review petition submitted by banks.

The incidence of the decision was expected on United Bank Ltd (UBL) and Habib Bank Ltd (HBL).

Market participation in terms of volumes rose 2pc over the earlier day to 147m shares while value climbed 13pc to Rs7.6bn, signifying greater activity in high market-cap stocks.

Top five gainers included Lucky Cement, up 1.9pc, Bank Al Habib 2.1pc, Colgate-Palmolive Pakistan 5pc, Pakistan Tobacco 3.1pc and Nestle Pakistan 0.7pc, adding 99 points whereas HBL, down 1pc, UBL 1pc, Fauji Fertiliser Bin Qasim 5pc and National Refinery 3.1pc scrapped 85 points from the index.

Published in Dawn, April 18th, 2018