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KARACHI: The stock market snapped two-day selling streak on Wednesday with the index managing to recover 137.61 points (0.34 per cent) and close at 40,144.29.
Trading remained volatile with the benchmark making a high and low of 177 and 161 points during the day. Traders said that lack of interest kept participants away from the market represented by low volume.
The market’s return to the green was led by value investing by banks, mainly in the last hour and broker proprietary buying of $1.14 million. Ali Nadeem, head of sales at First National Equities, said that brokers had sold off stocks earlier in the week and they repurchased at dips to square their positions.
Foreign investors sold shares worth $1.38m and individuals also exchanged cash for shares, lest the market took another dip. Several analysts including Nadeem said that the market remained directionless and may continue to trade sideways for the next two days as investors wait for outcome of the opposition’s power show on Friday.
The Financial Action Task Force’s preliminary session is also due next week. Since July-September results would start to flow in from early next week, investors would wait for the dust to settle on the political front.
“Concerns over political uncertainty and inflationary tendency caused investors to stay at bay rather than taking long positions,” affirmed analysts at Arif Habib Ltd.
Overall trading activity remained thin for most of the session and only saw brisk buying by the close of session. The volume declined 20pc further to 232.8m shares, from 290.1m. Traded value also dropped by 13pc to $52.3m.
Oil and gas marketing companies, cement and steel stocks sustained selling pressure, despite positive expectations of investors on upcoming quarterly announcements. Exploration and production scrips made marginal gains as international oil prices improved.
Besides, Oil and Gas Development Company, up 0.4pc, other gainers were Hub Power 0.8pc, Engro Corporation 0.1pc, Fauji Fertiliser 0.1pc, Shell 7.5pc and DG Khan Cement 1.2pc.