Daily Times

Stocks managed to gain ground on Tuesday, following Monday’s massive tailspin, as benchmark KSE-100 index clocked at 41,204.36 index level after a 1.14% (463.41 points) gain compared to previous session’s closing figures.

On Tuesday, Investors shrugged off the panic which was fueled by an expected ruckus at the political spectrum after PML-N president and Leader of the Opposition in the National Assembly Shehbaz Sharif was arrested by the National Accountability Bureau (NAB) on Monday. On the day, the trading session began with over 300 points loss in early trade, as settlement ratios from last week’s rollover activity caused selling pressure at the bourse. However, as soon as the settlement concluded, bullish sentiments kicked in, led by heavy buying activity as investors cherry picked oversold stocks, as value hunting was witnessed across the mainboard stocks.

Kse-100 witnessed a volatile session Tuesday, as kse-100 index touched its intraday low at 40,644.82 index level after losing 351.15 points, however quickly recovering its losses, the index also touched its intraday high at 41,445.47 after gaining 704.52 points. The Index traded in a range of 1054.62 points or 2.59% of the previous close.

The index volumes receded from 282.07 million shares recorded in the previous session to243.68 million shares, while the overall market volumes also decreased from 407.2 million shares recorded in the previous session to 353.65 million shares.

The volume chart was led by Hascol Petroleum Limited followed by Unity Foods Limited and K-Electric Limited. The scrips exchanged 50.22 million 22.63 million and 21.17 million shares, respectively.

Sectors which lifted the index were Commercial Banks with 137 points, Oil & Gas Exploration Companies with 61 points, Oil & Gas Marketing Companies with 47 points, Cement with 47 points and Fertilizer with 45 points. Among the scrips, most points added to the index was by Bank Al Habib Limited which contributed 43 points followed by Engro Corporation Limited with 38 points, Lucky Cement Limited with 38 points, Oil & Gas Development Company Limited with 21 points and TRG Pakistan Limited with 21 points.

Sectors which dragged down the index were Miscellaneous with 11 points, Food & Personal Care Products with 4 points and Modarabas with 1 points. Among the scrips, most points taken off the index was by Shifa International Hospitals Limited which stripped the index of 11 points followed by Systems Limited with 11 points, Searle Company Limited with 10 points, Kohinoor Textile Mills Limited with 6 points and Cherat Cement Company Limited with 5 points.

Global markets: Investors speculated over U.S stimulus package, U.S Presidential debate

Global stocks traded mixed on Tuesday, amid lack of active participation as investors speculated over progress toward a fresh fiscal stimulus package in the U.S., with House Speaker Nancy Pelosi announcing on Monday night that the Democrats were unveiling a new $2.2 trillion stimulus package, smaller than initially proposed but still well above what Republican leaders have offered. Moreover, the markets held back ahead, as investors prepare for the first presidential debate between President Donald Trump and Democratic challenger Joe Biden, with a clear victory for either party likely to cause some market movement at the Wall Street.

In Asia, markets were mixed on Tuesday, with South Korea’s Kospi index edging up 0.86% to close at 2,327.89, while Nikkei 225 in Japan and China’s Shanghai composite managed to advance fractionally. However, lagging behind, Hong Kong’s Hang Seng index dipped 0.85% to close at 23,275.53.

European markets, however, pulled back across the board due to Brexit talks and the first U.S. presidential debate on investors’ radar. The Eurozone investors continue to look for clarity as both the U.K. and the European Union have indicated that a Brexit deal is still some way off after negotiations recommenced Monday over implementing their Withdrawal Agreement, which British Prime Minister Boris Johnson’s government has sought to renege on.

Following yesterday’s rally, banking sector shed most of the points, while utilities bucked the broad downward trend. Among the major bourses, UK’s FTSE-100 led the regional losses, and lost 0.42% followed by Germany’s DAX and CAC-40 in France, which lost 0.41% and 0.19% respectively.

In U.S, Wall Street took a breather following a sharp rally in the previous session while investors assessed whether this rebound can continue. The sentiments at the financial market will primarily be driven by Political news this week, with the first debate between President Donald Trump and Democratic nominee Joe Biden set for Tuesday night. Some Wall Street analysts believe the first debate of this cycle could be more consequential for the markets than most debates, with a clear victory by one candidate possibly creating significant market moves. During the early trading session, Dow Jones Industrial Average was trading 137 points lower, while S&P 500 was trading 0.4% lower. The tech heavy index Nasdaq Composite was also posting early losses.