KARACHI: The correction seen on Monday proved short-lived as the KSE-100 index recovered 221.79 points (0.55 per cent) on Tuesday and settled at 40,664.60.
With all quiet on the news front, either economic or political, the index moved both ways as investors indulged in quick bouts of buying and selling. The massive gains seen since Aug 19 kept participants cautious for fear of a major pullback as some regarded the market in oversold zone.
Investor participation was therefore muted. The index remained in the red in early trade and spiralled downwards to intraday low by 184 points in the negative. While the local institutions and mutual funds generally kept to the sidelines, foreigners decided to book profit and disposed of equity worth $3.86 million.
Massive buying by individuals of $3.55m was triggered in the last hour which helped offset the foreign selling. Closing seen at intraday high of 222 points provided confidence to investors that there may still be insatiable appetite for buying.
Traders were however concerned over the individuals leading the current rally right from the beginning. They argued that without wider participation by institutions, it may soon fizzle out.
The volume declined 21pc to 254.6m shares, from 320.1m a day ago while traded value plunged 19pc to $59.5m, as against $73.5m. Stocks that contributed significantly included Unity Foods, Fauji Foods, K-Electric, Lotte Chemical and Agritech Ltd, which formed 34pc of total turnover.
Sector-wise, autos, steel, cement and banking endured selling pressure. AHL Securities reported cement contributing 51 points to the gains, followed by pharmaceuticals at 27 points, banks 25 points, oil and gas marketing companies 25 points and exploration and production 20 points.
Among scrips, major gains were attributable to Lucky Cement, up 2.44pc, Pakistan Oilfields 2.19pc, United Bank 1.14pc, Nestle Pakistan 5pc, Pakistan State Oil 1.47pc, Engro Polymer and Chemical 1.47pc, Abbott Pakistan 4.84pc, Engro Corporation 0.42pc, Searle Company 2.07pc and IGI Holdings 5pc.
Published in Dawn, December 11th, 2019