KARACHI, Dec 12: Shares at the stock market began the climb again after taking a breather for a day. The KSE-100 index on Wednesday regained 42.91 points, which was about half of the loss posted the day earlier.

Most equity traders thought that the bulls were still in control and a correction, if any, would be pushed back at least until the announcement of the SBP monetary policy on Friday.

The index closed at 16,744.60 points, representing 0.26 per cent gain over the earlier day. Turnover was down to 113 million shares on Wednesday, from 127 million shares on Tuesday and the trading value also stood depressed to Rs3.242 billion, from Rs3.484 billion the previous day. Market capitalisation, however, rose to Rs4.204 trillion from Rs4.196 trillion the earlier day.

Out of the 359 active issues, gainers were 178, followed closely by 161 while 20 stocks remaining unchanged. The significant feature of the day's trading was the investors’ interest in second and third tier stocks, which contributed heavily to the day’s turnover. Gain of Rs1.69 in the price of heavy-weight OGDC also helped index close higher.

Foreign portfolio inflow was in the net sum of $1.68 million against outflow on Tuesday. Among the local participants companies were major sellers at $1.15 million worth stocks.

Ahsan Mehanti at Arif Habib Corp commented that stocks closed higher with investor interest across leading sectors on hopes for rate cut in SBP policy announcement.

Expectations for release of $600m Coalition Support Fund, higher global commodities, higher cement sales data, rising Urea and DAP off take and improved textile sector valuations on EU export relaxations played a catalyst role in bullish sentiments despite concerns for falling rupee dollar parity affecting foreign inflows at KSE.

Equity Dealer, Samar Iqbal at Topline Securities said that the market recovered on expectations that interest rate would be reduced in the upcoming monetary policy review.

Heavy-weight OGDC increased after ECC approved new pricing of Qadirpur gas field. Large cement companies like DGKC and Lucky also witnessed some buying, LOTPTA again remained in the limelight in anticipation that the government may provide them duty protection.

The news flow was generally depressing. The banking sector’s cash recovery against Non-Performing Loans (NPLs) posted a fall of 40 per cent during the third quarter of 2012 as compared to second quarter mainly due to economic slowdown.

Monetary expansion during the five months of 2012-13 fiscal year rose 200 per cent over the same period last year, which analysts said could change the current declining inflation scenario.

Also reports said that the gas supplies to four urea plants operating on the Sui Northern Gas Pipeline Limited network was curtailed by 45 per cent in the first 11 months of this year to Nov, compared to same time last year and Punjab’s textile industry was said to be fearing huge export losses due to ongoing strike of goods carriers.

During the day’s trading at the KSE, Nestle Pakistan stood out as the biggest gainer of Rs100 to Rs4,900, while Pakistan Services lost Rs9.35 to Rs177.65.

On the 10-top volume leaders list, Lotte PakPTA showed turnover in 11m shares, up by 20 paisa to Rs7.85. Jah Sidd Co followed but with a loss of 17 paisa to Rs 17.09 on 6m shares.

Byco Petroleum added 15 paisa to Rs10.92 on 5m shares; Maple Leaf Cement edged higher by 5 paisa to Rs13.84 on 4m shares; Colony Sugar Mills saw price rise of 71 paisa to Rs6.79 on 4m shares; PTCL was up 25 paisa to Rs17.08 on 4m shares; Dewan Sugar gained 44 paisa to Rs3.89 on 4m shares; Fauji Cement was up by 6 paisa to Rs6.51 on 3m shares; Fauji Fertiliser was stronger by 72 paisa to Rs112.98 on 3m shares and SNGPL rose by 43 paisa to Rs23.84 on 3m shares.