KARACHI: Investors in equities managed to shake off the gloom of the preceding two sessions with the KSE-100 index recovering 112.62 points (0.25 per cent) to end at 45,371.96 on Monday.

With the start of the roll-over week for future contracts and an uncertain political atmosphere, the market started on a weak footing and the index skidded to intraday low by 68 points before recovery set in banking and cement sectors to lift the benchmark to intraday high by 194 points.

Participation remained thin with volume down 17pc over the previous session to 113 million shares and the traded value lower by 22pc to Rs6.4 billion as much the activity remained concentrated in small-cap scrips.

Investors kept an eye on Oil and Gas Development Company (OGDC) as rumours of further sell-off by foreigners had continued to linger all through last week; the OGDC stock, however finished close to the block transaction price of Rs164. Overall, however, foreigners were net sellers of equity worth $2.13m according to figures furnished by the National Clearing Company of Pakistan.

Budget-related speculations on various proposals pertaining to subsidy for power sector, reduction in super tax on banks and withdrawal of 5pc withholding tax on bonus shares were digested by the investors without much impact but their attention was caught by some active companies, such as Pakistan State Oil (PSO), Engro and Kohat Cement, disclosing financial results. Sui Southern was said to have gained 3.5pc on possibility of dispute settlement with K-Electric while PSO’s earnings though in line with street expectations, the surprise payout at 100pc pushed the stock up 1.9pc.

Sectors that contributed to the index gains included oil and gas marketing companies, higher by 37 points, exploration and production 23 points, commercial banks 20 points, tobacco 15 points and engineering 8 points.

Major gainers were Pakistan Petroleum, up 1.43pc, PSO 1.93pc, Pakistan Tobacco 2.81pc, Habib Bank 0.47pc and Hascol Petroleum 4.36pc, adding 89 points. On the flip side, Pakistan Oilfields 1pc took away 15 points.

Published in Dawn, April 24th, 2018