month.
Since the recent fall is not due to any political or economic crisis or regulatory issue, thus, chances of market recovery in line with past trend are high.
Ahsan Mehanti at Arif Habib Commodities said the market gained confidence after the regulator advised stock exchange to remain alert for rumors and speculations as well as ensure risk management measures. Resultantly, index posted a record surge just after a record one day fall.
“Stocks rose across the board led by oversold banks, oil, fertilizers and cement scrips on speculations ahead of quarter-end results. Expected revision in local petroleum prices and institutional support at the quarter end close played a catalyst role in bullish activity at KSE”.
Many scrips in different sectors hit their respective upper limits on Tuesday, but the sector that had the most scripts hitting their upper lock was the banking sector, one of the most oversold sectors.
Bank of Punjab (BOP), Askari Bank (AKBL), HBL, MCB, ABL, UBL and Bank Al Falah all closed at upper limit. The cement sector also remained the focal point of investors’ attention with Lafrage Pakistan (LPCL), Lucky Cement (LUCK), Pioneer Cement (PIOC) and Attock Cement (ACPL) hit their upper locks.
Fundamentally, there are several positive triggers for the cement sector. As some cement companies are highly leveraged the recent interest rate cuts will have a positive earnings impact for this quarter along with expected higher local dispatch numbers for the whole sector.
“We expect that the recovery trend will continue and all the long ignored positive triggers will keep the market headed in the positive direction,” Ahmed Saeed at JS Global Capital said.
Highest volumes were witnessed in K-Electric Limited with a turnover of 44.875 million shares. The scrip gained Rs1.0 to close at Rs7.11. It was followed by Bank of Punjab (BoP) with a turnover of 24.681 million shares. It gained Rs1.0 to end at Rs8.05. Pak Elektron was the third with a turnover of 21.254 million shares. It gained Rs2.11 to finish at Rs44.44.