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KARACHI: The share market on Tuesday staged a broad recovery on strong covering purchases on all the counters under the lead of fertilizer sector amid hopes of cut in the key discount rate by the end of the current week.
Although opinions about the downward revision in the discount rate differ from analyst to analyst but half a per cent cut appears to be a consensus figure.
However, the lowering of the rate is always welcomed by the trade and industry as well as the stakeholders in the share business and the market welcomed it well before the event on Saturday.
The KSE 100-share index rose by about two per cent or 225.03 points at 11,933.28, only 67 points below its next target of 12,000 level as investors made hectic covering purchases on all the counters, notably on those where the capital gains are pretty sure.The volume figure also crosses the barrier of 100m share mark at 105.657m, signaling that further improvement is on the cards during the next couple of sessions.
At one stage all roads virtually led to the fertilizer sector on the analyst predictions that their earnings will further increase after an increase of Rs202 per bag in the selling price.
“The fertilizer sector led the rally pushed the benchmark to an eight-month high boosted by higher active buying in Fauji Fertiliser, Fauji Fertiliser Bin Qasim and Engro Corporation, which of late has been under pressure”, said a leading analyst.
He said an improved performance of the blue chip sector further strengthened the investor perceptions about the fresh capital gains and they made fresh covering purchases at the rising prices.
Leading gainers were led by Unilever Foods and Nestle Pakistan, higher by Rs80 and 41.85, while prominent losers included Dreamworld, and Indus Dyeing, off Rs28.75 and 19.86, respectively.
Traded volume rose to 105.657m shares from the previous 56m as gainers held a comfortable lead over the losers at 158 to 134, with 84 shares holding on to the last levels.
The active list was led by Fauji Fertiliser Bin Qasim, up Rs3.42 at Rs61.77 on 11m shares followed by Fatima Fertiliser, steady by one rupee at 19.98 on 9m shares, Bank AlFalah, firm by 29 paisa at 11.64, also on 9m shares, J.S. & Co, easy five paisa at 5.63 on 5m shares, PTCL, steady 17 paisa at 11.64 also on 5m shares, Fauji Fertiliser, sharply higher by Rs8.12 at Rs170.62 on 4m shares, and Lotte Pakistan, firm by 36 paisa at 12.16 on 4m shares.
They were followed by Engro Corporation, higher by Rs4.80 at Rs142.42 on 4m shares, Arif Habib Corporation, steady 17 paisa at Rs30.54 on 3m shares and Maple Leaf Cement, lower 23 paisa at 1.74 also on 3m shares.
FUTURE CONTRACTS: Fauji Fertiliser Bin Qasim also led the list of actives on this counter, up Rs2.92 at Rs62.25 on a large volume of 2.523m shares, followed by Engro Corporation, higher by Rs4.69 at Rs143.62 on 1.143m shares and National Bank, higher Rs1.33 at 47.47 on 0.634m shares.
They were followed by Fauji Fertiliser, higher by Rs8.19 at Rs171.99 on 0.398m shares and Lucky Cement, easy six paisa at 75.11 on 0.391m shares.
