Karachi: Stocks staged strong recovery on Wednesday with the KSE-100 index adding 198.10 points (0.58 per cent) to close at 34,331.94.
Volumes jumped to 391 million shares of Rs12 billion value. Major trading activity was seen in second-tier stocks.
Investors were encouraged by the smooth futures contract rollover. Positive closings in most international markets also helped lift sentiments. However, foreign investors decided to take profit from sale of $3.86m worth stocks, with major outflows of $1.9m in fertiliser and $1.5m in the banking sector.
Dewan Cement’s decision to convert its outstanding loan of Rs500m to 50m ordinary shares helped its scrip to close at its upper-limit.
News flow was generally positive. The National Assembly passed the finance bill 2015-16.
IGI Insurance told the KSE that it had acquired 6.1m ordinary shares of American Life Insurance under the share purchase agreement.
Analyst Ahsan Mehanti stated that higher banking spreads data for May 2015 at 5.59pc amid Moody’s upgrade on deposit ratings last week and falling borrowing costs played a major role in market upsurge.
Cement sector remained strong as LPCL, POWER and DCL hit their upper-circuit.
In banking sector, NBP reached its upper-circuit while other scrips such as MCB and UBL also remained green.
According to Sunrise Capital, slight rebound in international oil prices strengthened the market. Leading gainers on the sector were PSO and HASCOL ending the day up 1.3pc and 2.5pc, respectively.
Cement sector was in the limelight with volume of 71m shares, followed by power sector 42m shares and technology and communication sector with 41m shares.
