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KARACHI: The stock market on Tuesday was back on the rails followed by strong covering purchases at the overnight lower levels on reports that the diplomacy is at work to defuse the tension with the US.
Analysts said a series of positive developments on the political front on the Haqqani network issue, notably the Saudi efforts, have reinforced investor confidence that the threatened US action may not be around.
“Most of the investors, both local and foreign who indulged in panic- selling a day earlier, were back in the market and lifted leading base shares under the lead of OGDC, Engro Corporation, National Bank, Pakistan Oilfields and some others.
The KSE 100-share index, which received a massive battering a day earlier recovered a good part of the overnight loss and was quoted recovered by 266.21 points or 2.36 per cent at 11,531.24, reflecting the strength of leading base shares.
“There may still be many slips between the lip and the cup but investors are pretty sure that the Saudi entry to defuse the prevailing tension may have the desired results,” most analysts believe.
The snap rally just at the heels of a massive overnight price erosions reflects that investors may not have two opinions about the future market trend, they added.
They said positive news from the corporate front would allow the market to sustain the rally as current lower levels ensure a lot of capital gains.
Top gainers were led by Unilever Pakistan and Nestle Pakistan, up by Rs107.60 and 69.28, while prominent losers included Unilever Foods and Indust Motors, off Rs42.88 and 7.59.
Traded volume suffered a modest fall at 71.516m shares from the previous 80m shares but gainers forced a strong lead over losers at 204 to 55, with 93 shares holding on to the last levels.
The active list was topped by Fauji Fertiliser Bin Qasim, higher by Rs2.37 at 56.96 on 9m shares followed by JS & Co, steady by 28 paisa at 5.71 on 6m shares, Dewan Salman, firm by 31 paisa at 2.11 also on 6m shares, National Bank, higher by Rs1.43 a 45.19 on 5m shares, Dewan Motors, steady by 70 paisa at 3.14 also on 5m shares, PTCL, up 39 paisa at 11.33 on 4m shares, and Lotte Pakistan, steady by 33 paisa at 11.85 also on 4m shares.
They were followed by Fatima Fertiliser, up 57 paisa at 17.79 on 3m shares, Bank Al-Falah, up 33 paisa at 10.62 on 2m shares and Engro Corporation, sharply higher by Rs6,23 at 135.19 also on 2m shares.
FUTURE CONTRACTS: The active list was led by both the settlements of Fauji Fertiliser Bin Qasin, up by Rs2.31 and 2.38 at 57.59 and 57.02 for October and the September respectively. Large volume of 1.870m and 1.779m was recorded in them.
They were followed by National Bank, up Rs1.33 at 45.23 on 0.990m shares, both settlements of Engro Corporation, up Rs6.26 and 6.34 at Rs135.49 and 136.53 for the maturing September and the newcomer October contracts respectively on 0.501 and 0.481m shares.
DEFAULTER COs: Active trading was also witnessed on this counter on active support at the lower levels, the most active among them being Invest Bank, steady by two paisa at Rs0.25 on 0.380m shares followed by Dewan Autos, firm by 17 paisa at 1.26 on 53,487 shares and Japan Power, up four paisa at 0.98 on 30,440 shares.
Brothers Textiles, Abdullah Shah Sugar and Dadabhoy Cement were also actively traded amid either-way movement.
