KARACHI: Stocks rebounded on Tuesday with the KSE-100 index recouping 608.23 points (1.47 per cent) from the crippling losses of 1,027 points suffered a day earlier.

The index settled at 41,90.47, regaining Rs61bn of the market capitalisation lost on Monday. Recovery, which continued throughout the session, was underpinned by improvement in world equity markets as fears of an imminent Iranian retaliation to avenge the US killing of military commander Qasem Soleimani three days ago subsided.

International oil prices recovered some of the lost ground providing confidence to the market that there was unlikely to be a major disruption in supplies.

The local market was fed with other positive news as well. The National Assembly and Senate Standing Committee on Defence approved the three bills formalising the tenure of the chief of Army, Air Force and Navy. Besides, the new regulation relating to inter-corporate dividend relief to group companies was also well received.

Foreigners scooped for value-hunting for the second day as they picked up shares worth $3.68 million. They were followed by individuals who took fresh positions in stocks valued at $1.10m, absorbing the mutual funds offloading $4.03m.

Sector-wise, banks, oil marketing companies, refineries and cement remained in the limelight with Lucky, Pakistan State Oil, Attock and National Refinery hitting upper circuits.

Banking contributed 205 points to the index recovery on expectations of strong fourth quarter and yearly results. Fertiliser sector followed with gain of 83 points.

The index received support from major blue chips where Habib Bank, higher by 3.5pc, Lucky Cement 4.7pc, Dawood Hercules 5pc, Pakistan State Oil 4.7pc, Engro Corporation 1.7pc, Hub Power 1.7pc and Bank Al Habib 2.3pc.

The volume declined 23pc to 206.9m shares with OMCs seeing 31.1m shares changing hands. Meanwhile, tradedvalue fell by 14pc to reach $59.2m. Stocks that contributed significantly included Hascol, K-Electric, Siddiq­sons Tin Plate, TRG Pakistan and Unity Foods.

Published in Dawn, January 8th, 2020