LAHORE - Pakistan Stock Exchange recouped 442 points, (+1.1 percent) on Tuesday to finally close at 39,603 levels after making a high of +497 points. The major sectors- Financials, Energy and Fertilizers - cumulatively contributed +389 points towards the close where MCB (+3.2 percent), PPL (+2.2 percent), HBL (+2.7 percent), HUBC (+2.7 percent), OGDC (+2.4 percent), POL (+2.0 percent), BAHL (+1.3 percent), UBL (+2.3), EFERT (+2.8 percent) and ENGRO (+1.3) closed in the positive zone. Cement sector was the major dampener where LUCK (-1.4 percent) and DGKC (-2.8 percent) closed in the red zone. Trading activity slightly improved as average daily traded value stood at $81 million, up 71 percent while volume stood at 196 million shares, up 19 percent. Furthermore, major contribution to total market volume came from MLCF (-4.7 percent), KEL (+2.2 percent) and BOP (+0.5 percent). Moving forward, expect market to remain choppy and volatile on the back of serious economic concerns where we contemplate increase in CAD, currency devaluations, IMF stringent terms and conditions, mowing down of development budgets, inflationary pressure with further cut down in the growth rate.

Experts said that equities experienced a volatile trading session today, as it was a story of two halves. During first half of the session the index remained under selling pressure, as yesterdays negativity continued, with the index hitting a low of 38,889 level (breaching the 39,000 level for the first time in 28 sessions).

The market recovered in the second half though, as attractive valuations enticed investors.

Rising international oil prices kept E&P’s prospects positive in investors’ eyes as it added 120 points to the index, led by OGDC (+2.4%), PPL (+2.2%) and POL (+2%). At the same time, interest rate hike of 150bps benefited Commercial Banks as the sector added 171 points.