KARACHI, Jan 8: Stocks recovered some ground on Tuesday as investors accumulated shares on attractive valuations and on hopes of strong corporate profits, which are due to be announced in the coming days, dealers said.

The KSE 100-share index ended 0.87 per cent, or 143.11 points, higher at 16,645.76 points. It traded in a relatively broad range as it made an intra-day high and low at 16,654.64 and 16,502.65, respectively.

But investors remained cautious and stood on the sidelines amid political uncertainty.

“Investors continued to remain wary from the uncertain political path ahead as volumes fell to 47-week low and remained confined to mid-capped stocks,” said Samar Iqbal, a dealer at Topline Securities Ltd.

Turnover decreased further to 86.79 million shares, the lowest since over 10.5 months, compared with 95.48m shares traded on Monday. But trading value rose to Rs2.69 billion from Rs2.41bn in the previous trading session, and the market capitalisation stood at Rs4.17 trillion, higher than Monday’s Rs4.13tr.

The market was supported by buying in heavyweight Oil and Gas Development Co Ltd which gained Rs1.90 to close at Rs189.40 and also MCB Bank which ended Rs3.30 higher at Rs207.98.

Dealers said investors were hesitant to indulge in fresh buying amid talks between Pakistani and International Monetary Fund officials.

The visiting delegation of IMF that has led to various speculations linked to the purpose of visit, that includes assessment of financial strength regarding pay back of SBA, coupled with volatility linked to million march did restrict the intra-day day traders as reflective in the overall volume that struggled to reach 100 million," said Hasnain Asghar Ali from Escorts Capital Ltd.

According to reports, the Fund Mission led by Jeffrey Franks, is expected to analyse Pakistan’s ability and capacity to repay its outstanding loans to the Fund and other creditors without the possibility of a default.

However, foreign investors were active on Tuesday, buying on lower levels as they bought shares worth a net $1.71 million compared with buying shares worth a net $1.31m on Monday, bringing the total for this month to $22,789.61.

Companies were the major buyers in the market as they bought equities worth $1.44m. The biggest gainer was Millat Tractors which ended Rs28.75 higher at Rs603.75, followed by UniLever Pakistan which closed Rs25.01 higher at Rs10,000.

Siemens Pakistan witnessed the biggest loss as it shed Rs7.10 to Rs615 followed by Pakistan International Container, which fell Rs5.62 to close at Rs215.19.

The KSE-30 index ended 0.87pc, or 117.81 points, higher at 13,601.52. Out of the 319 companies traded, the value of only 237 increased, 58 decreased while 24 remained unchanged.

The second and third tier companies dominated the 10 most active traded stocks: Maple Leaf ended 83 paisa higher at Rs15.50 on turnover of 19.97 million shares, Askari Bank gained Rs1 to Rs18.84 on 6.52m shares and Byco Petroleum rose 24 paisa to close at 13.71 on 4.93m shares.

Jahangir Siddiqui Company Ltd ended 23 paisa higher at Rs15.11 on 4.76m shares, Nishat Chunian rose Rs1.38 pm Rs35.66 on 3.8m shares and Fauji Cement increased marginally by 6 paisa to Rs6.32 on 2.02m shares.

Bank of Punjab rose 12 paisa to Rs8.9 on 2m shares, TRG Pakistan gained 34 paisa to Rs5.42 on 1.9m shares and Fauji Fertiliser ended 40 paisa to Rs117.29 on 1.71m shares. NIB Bank ended unchanged at Rs2.4 on 1.55m shares.