KARACHI: Bulls took firm control of the market on Tuesday as the KSE-100 index climbed 417.93 points (1.27 per cent) to close at 33,202.87. Index heavyweight stocks like Pakistan Petroleum, OGDCL, PSO and Habib Bank contributed 149 points to the day’s gain.

While local institutional and individual investors seized the opportunity to buy stocks at attractive valuations after the heavy decline last week, foreign fund managers decided to take profit with heavy sale of $9.38 million worth of stocks, mainly in the fertiliser and textile sector. The year-to-date foreign portfolio outflow amounted to $186.09m.

Traded volume increased to 149m shares, down 11pc from 166m shares a day ago while its value increased by 8pc to Rs8.5 billion, from Rs7.9bn. Although gains were seen all across the board, volumes were recorded mainly in second-tier stocks. “SECP clarification that National Account­ability Bureau (NAB) has taken action against brokers who misused clients’ assets gave a breather to investors’ confidence, prompting them to take fresh position in the market,” stated dealers at Topline Securities.

Investors were encouraged to participate on account of some stability in the international markets. Analysts at brokerage JS Global observed that the oil sector led the rally in the local equity market, due to recovery in international oil prices.

In oil sector, PSO closed near its upper circuit gaining 4.86pc amid market rumours of clearance of circular debt being a condition for next IMF tranche. Mixed sentiments were witnessed in the cement sector due to drop in despatches by 4pc month-over-month in September 2015.

Fertiliser sector recovered as Fatima, Engro and FFC closed up 0.78pc, 2.07pc and 0.55pc, respectively.

Published in Dawn, October 7th, 2015

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