KARACHI - Pakistan Stock Exchange showed recovery led by oversold banking, fertilizers and oil scrips on strong valuations in late session institutional buying.

Market remained astonishingly volatile in yesterday's trading session, repeatedly going to extreme ends throughout the day. The benchmark index fluctuated between low of 1,088 points and high of 851 points and finally closed up 560 points up at 45474.46 points. The decline came from redemptions of local mutual funds, where increase came in the latter hours with buying interest on attractive valuations, said analyst at JS Global.

Activity at the bourse exhibited an epic battle between the bulls and bears, as evident by the intra-day index curve drawing out 7 major inflection points and covering a span of almost 7,000 points in both directions, observed analyst at Topline brokerage. The index traded in an extremely volatile range of 1,939 points/4.3%, last seen on June 1st post MSCI upgrade. Given the prevailing political situation and an overnight decline crude oil prices, the market opened on a negative note. Initially bears were in control, but lost steam as they pushed the index below 44k (last breach below 44k was in Dec’16), giving way to bulls who eventually triumphed & led the index to close up 560 points, he added.

Index point leaders were HUBC (up 3.8%), ENGRO (2.9%), UBL (2.5%), DGKC (4.6%) & SNGP (4.8%) adding 257 points; while PSEL (dip 5%), TRG (3.7%), PPL (0.9%), DAWH (1.4%) & PIBTL (3.1%), which withheld 75 points from the index. On the sector front, banks contributed 160 points, cement 101 points, power 84 points, fertilizer 64 points & auto assemblers 59 points; whereas transport shed 19 points.

Concerns over $30b record trade deficit for Jul-May'17, slump in global crude prices and report on US tougher policy on Pakistan invited early session pressure. Selected steel and cement stocks outperformed on development commitments in federal and provincial budgets. Upbeat data on oil production for Jul-May'17 played a catalyst role in major recovery at PSX, market participants said.

Market participation rose further as volumes gained 17% to 346m shares, while traded value rose 27% to Rs16.6b/$159m.