Daily Times

KARACHI: Pakistan Equities on Tuesday managed a positive close in a volatile session where the benchmark KSE-100 Index traded in a range of 400 points. The KSE 100 index closed at 49015.09 level, up by 85.97 points.

“Stocks opened lower continuing with Monday’s momentum and KSE-100 Index tested the 48,700 level (-272 points) earlier in the day, however value buying at lows afterwards primarily in Index names helped the market recover and trade in the green zone”, said Ali Raza, an analyst T Elixir Research.

Near the day’s end, an intra-day surge in global crude also lent a hand that lead to index heavy Oil & Gas Development Company (OGDC) topping the leaders’ board. Meanwhile, Kot Addu Power closed flat despite announcing sub par earnings. Overall, lackluster activity was again witnessed with both Volume and Value on KSE100 Index changing very little on Monday’s level.

Raza said lack of clarity on market direction amid lower institutional participation, ongoing court hearing of Panama case, and a terror attack near mid-day in Northwest Pakistan likely kept most investors cautious and at bay. “We see a volatile and choppy market in the near-term with participants anxiously awaiting the outcome of a court hearing on the First family’s case in the coming days”.

Nabeel Haroon of JS Research stated that volatility prevailed in the market as the index traded between an intraday high of +174 points and an intraday low of -273 points. The banking sector exceeded its previous day’s advance as it gained to close (+0.4%) higher. Habib Bank Limited (HBL) (+0.35%), MCB (+0.52%), and United Bank Limited (UBL) (+0.73%) were among the major index movers from the aforementioned sector.

Selling pressure was witnessed in the fertilizer sector as it lost value to close (-0.5%) lower than on the previous day. Fauji Fertiliser Company (FFC) (-0.55%) and Fauji Fertiliser Bin Qasim Limited (FFBL) (-1.40%) were among the major losers of the fertilizer sector.

Aisha Steel Mills Limited (ASL) in the steel sector gained to close +4.28% on the back of investor anticipation that the courts will maintain the antidumping duty status imposed by NTC on dumped imports of cold rolled coils and galvanized steel being imported from China in a hearing today.

“We expect the market to remain volatile and recommend investors to stay cautious in the ongoing futures’ rollover week”, affirmed Haroon.