Stocks rebound as low valuations attract investors
KARACHI: After a heavy sell-off on Monday that saw the KSE-100 index concede 3.75 per cent, stock market investors weighed the risks and potential rewards on Tuesday.
The risks emanated from the political headwinds while the possible upsurge in fundamentally strong scrips available at low valuations attracted investors.
Trading was thus volatile with the benchmark index oscillating between the intraday high of 841 points and low of -572 points.
In the final hours, investors opted for fundamentals, which spurred the index by 399.24 points or 0.84pc to close at 48,071.04.
As investors got over their fears and returned to the market, the trading volume swelled 45pc over the earlier day to 317 million shares. The value jumped 61pc to Rs15bn, though investors remained focused mainly on second- and third-tier stocks. Engro Polymer and Chemicals, Aisha Steel Mills and TRG Pakistan contributed 54m shares to the total volume.