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Index recovers 189 points on active buying

KARACHI - The recent downward drift was halted on the Karachi stock market on Tuesday as investors were back in the ring and made active covering purchases at the lower levels, lifting the KSE 100-share index by 189.29 points or 1.92 per cent above the base level at 1,0042.47.

"An immediate positive change in the market's bearish psychology came after a joint meeting of the SECP-KSE and NIT highups decided to arrest the continued erosions in the share values," said an analyst Faisal A. Rajabali "but how long as there is no change in the other aiding factors, which sustain snap run-ups."

The chief factor behind the snap rally was permission to the managers of the Rs20.00 billion market support fund was to intervene as and when required on daily basis rather than original stipulation of periodical intervention, he added.

Together with an enormous funds at the disposal of the NIT, the market support could really give a positive direction to the market weighed down by the negative political undercurrent, analyst Hasnain Asghar Ali predicts.

Bank, oil and cement shares, which are now ruling well below their lower circuit breakers led the market advance but turnover figure did not match the buying orders as stakeholders had purchased these shares at much higher rates.

The snap rallies had already been witnessed including last Wednesday's aided by positive news but faltered half way owing to the absence of supporting news in the backdrop of political and economic instability, he said.

Another analyst Ahsan Mehanti said there is no harm to buy at the current levels on selected counters as capital gains are almost ensured atleast for the near-term, adding indications are that the fund support will continue in the coming sessions also.

Massively battered Shell Pakistan and MCB led the gainers, up by Rs13.19 and 12.01,while losers were led by Sapphire Fibres and EFU General, off by Rs14.59 and 10.79 respectively.

Trading volume showed a modest rise of 12,000 shares at 144m shares as gainers forced a modest lead over the gainers at 133 to 121, with 17 shares holding on to the last levels.

The NIB Bank led the list of actives, up by 44 paisa at Rs9.40 on 13m shares, Hub-Power,steady by 20 paisa at Rs23.70 on 12m shares, National Bank, up by Rs1.82 at Rs109.90 on 11m shares, OGDC, sharply higher by Rs4.55 at Rs109.45 on 10m shares, Arif Habib Securities, higher by Rs2.35 at Rs175.00 on 7m shares, Pakistan Petroleum, up by Rs9.72 at Rs204.23 on 5m shares and Engro Chemical Pakistan, higher by Rs7.91 at Rs196.51 also on 5m shares.