Daily Times

KARACHI: Pakistan equities sky-rocketed on Tuesday with benchmark KSE100 index settling above 42,700 level, up 2.6 percent or 1,097 points to close at 42,745 index level.

Market witnessed impressive recovery amid aggressive value buying mainly from local institutional investors. Oils +3.1% led early gains as higher global crude piqued investors interest . The Brent touched $80 per barrel due to tightened global supply. Later on other key sectors including Steels +4.9%, Fertilizers +4.4%, Cements +2.9%, Banks +2.2% joined the rally. This coupled with news of inflows in Emerging Market after a long period of selloff further bolstered market sentiments.

Activity witnessed a boost as volumes on KSE All Shares Index more than doubled today compared to this month’s average. Among scrips, POL closed at its upper lock while PPL gained 4% in its value. Fertilizer scrips also remained in limelight due to likely rise in urea prices by Rs60?100/bag where Fauji Fertilizer (FFC) and Fauji Fertilizr Bin Qasim (FFBL) closed at their ceilings. While, Engro Fertilizer (EFERT) and Fatima Fertilizer( FATIMA) gained 3% each. Fauji CementXD remained volume leader followed by Pak ElektronXD, TRG Pak Ltd, Faysal Bank, B.O.Punjab, Engro Polymer, Power Cement, Sui North Gas, Sui South Gas, and United BankXD

Market may see further recovery as institutional flows set the tone, however, any sizeable outflow by foreigners in the coming sessions can again derail the momentum, according to equity analysts.

Published in Daily Times, May 23^rd 2018.