Karachi

Stocks on Tuesday staged recovery on strong institutional interest in oversold market and KSE-100 Index posted a gain of 517.44 points or 1.59 pc to close at 33023.80 points.

Market recovered 1.5pc after a sharp fall of 3.1pc yesterday, after investor realised no major foreign selling, said an investment analyst.  Investors also took fresh positions ahead of MSCI review which will be announced by mid night today.

Traded volumes of 176m shares and value of Rs.10 billion decreased by 25pc and 18pc respectively from yesterday.

Cements stocks recovered sharply. MLCF closed up 5pc, DGKC gained 4pc, FCCL rose by 2.5pc and LUCK up by 1pc.

OIL stocks also rallied as POL increased by 2.7pc, PPL rose by 1.7pc and OGDC gained by 1.4pc. Analyst Umair Hasan said after yesterday’s bloodbath with market losing over 1,000 points, the index started the day with lackluster volumes. Yesterday’s bearish session was mainly attributed to NAB-SECP contact in opening investigations of fraud within financial entities causing widespread investor disinterest.  Investors remained cautious as the market declined to an intra-day trade low of 152 points. However, by the latter part of the day, market picked momentum with strong volumes as IMF’s seventh tranche worth $506m regained investor interest with the index ending at 33,024 points, he added.

Largely undervalued stocks, after yesterday’s correction, attracted investors’ interest with undervalued cement stocks remaining strong. MLCF hit its upper-circuit rose 5pc while DGKC, FCCL and LUCK ended 3.8pc, 2.2pc and 1.6pc higher. Undervalued banks also posted strong recoveries as BAFL, HBL, FABL and MCB ended 1.2pc, 1.8pc, 0.5pc and 1.8pc higher. Oil & Gas also displayed slight recoveries as POL, PSO and SHEL ended 2.2pc, 2.2pc and 3.3pc higher.

Recovery in global crude prices after Greece debt repayment to IMF, Govt. accord with IMF for $506m tranche release, favourable OMCs sales data for April’15 and easing political uncertainty after Supreme Court suspension on de-seating key Govt minister played a catalyst role in bullish activity at KSE, analyst Ahsan Mehanti commented.