Index recovers from lows amid strong buying

KARACHI — The KSE 100-share index yesterday staged a snap recovery and rose by 158.42 points at 13,351.79 aided by strong short-covering by the financial institutions and speculative traders in the leading base shares.

By Our Correspondent

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Published: Sat 21 Jul 2007, 8:53 AM

Last updated: Sat 4 Apr 2015, 10:21 PM

The underlying sentiment was also uppishly inclined ahead of supreme court ruling on the petition of Chief Justice amid loud whispering that he may be restored, some analysts said "although the apex court ruling came after the close of trading during the afternoon session at 4pm."

"I don't see it as a rescue operation launched by the financial traders inspired by dictates beyond the market technical demands," said a leading analyst, "covering purchases at the attractively lower levels in the main base stocks having a massive weightage in the KSE 100-share index."

The important thing was that the rebound manifested itself in a bigger way at the weekend session, which generally attracts selling from jobbers and sundry speculators who are not inclined to take risk during the intervening holidays.

After having fallen by about 1,000 points or seven per cent during the last couple of sessions on reports of bloodshed in the series of suicide attacks, the market base has been violently shaken and investors were terribly scared and could not precisely decide to "buy or sell".

The general perception is that the current tempo of recovery could be sustained during the next week also as by that time positive impact of apex court's ruling restoring the chief justice may well prove another aiding factor, some analysts said.

Nestle Pakistan and Wyeth Pakistan were leading among the gainers, up by Rs50.00 and 73.50, while losers were led by Unilever Pakistan and JS & Co, which fell by Rs20.00 and 21.55 respectively.

Trading volume fell further to 260m shares from the previous 322 million shares as gainers held a fair lead over the losers at 177 to 124, with 18 shares holding on to the last levels.

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