KARACHI: The stocks bounced back on Tuesday, recovering a little over half the losses suffered a day earlier. The KSE-100 index regained 652.40 points (2.13 per cent) and closed at 31,231.55. Intraday gains were 724 points.

Institutional participation remained low while the bullish individuals took fresh positions in stocks worth $5.50 million and mainly offset the sell-off by foreigners in the sum of $6.25m.

Most brokerage houses gave run of the mill reasons for the market swings. How­ever, Next Capital Executive Director Zulqarnain Khan pinpointed that investor confidence was boosted by the feeling that the dreaded coronavirus may not do Pakistan and the regional markets as much damage as it did in the developed world.

Secondly oil prices looked to have bottomed out and since 60pc of the current account deficit was im­­pacted by oil imports, it may have a favourable impact on the local economy.

Another stock broker said that there was also a feeling in the market that international donors may take a soft stance on Pakistan which could release pressure on the rupee. And finally many marketmen thought that in order to start the activity in the construction sector, lockdown hours may be cut short. Builders and developers were already reported to be planning to initiate around 1,000 new projects worth over Rs1 trillion over the nine-months ending December.

Analysts said that the investors lapped up the oil and cement stocks and the optimism crossed into other sectors. Buying in cement shares intensified in final hours of the trade on the back of news that the Federal Board of Revenue had prepared a notification relating to incentives for the construction, which are expected to be placed before the cabinet for approval later in the day.

Scrip-wise, major gainers were Engro Corporation, higher by 1.2pc, Habib Bank 3.9pc, Hub Power 4.5pc, Fauji Fertiliser 1pc, Oil and Gas Development Company 5.4pc, MCB 0.1pc, Pakistan Petroleum 6pc and Lucky Cement 4.6pc.

Published in Dawn, April 8th, 2020