KARACHI: Pakistan equities snapped four-day negative streak and bounced back on Wednesday on arrival of value hunters who sensed that the market had been pulled down to bargain levels. The KSE-100 index thus recovered 836 points (2.1 per cent) to settle at 40,454.

Regardless of the large net outflow by foreigners in the previous two days and prevailing noise on political front, market opened positive and gained steadily throughout the day as locals bought oversold index names that looked ripe for cherry-picking.

Companies were in the forefront of buyers, accumulating stocks worth $2.22 million. Foreign corporates were the major sellers in net outflow of $4.53m.

The volume declined by 16.5pc to 116m shares from 139m shares a day earlier, while the traded value eroded by 25.8pc to Rs6.9 billion, from Rs9.3bn.

According to Elixir Securities major contribution to the index upside came from OGDCL, which went up 2.1pc, Pakistan Petroleum 3.5pc, MCB Bank 3.6pc, Habib Bank 2.2pc, Pakistan Oilfields 3.9pc and Engro Corp 3.1pc.

Other dealers pointed out that the oil and gas exploration companies remained in limelight as WTI crude oil price made an intraday high of $55 a barrel. Cements also posted a rebound as Lucky added 3.30pc, Cherat 2.05pc, MLCF 2.28pc and Power 2.01pc.

Automobile shares were also in demand where Hinopak gained Rs30 followed by ATLH Rs25.44, PSMC Rs18.53 and Indus Motor Rs11.10.

Dealers at Topline Securities observed that the investor sentiment improved taking cue from news flow apparently indicating a change in stance in the PML-N strategy to avoid confrontation with state institutions and nominating Shahbaz Sharif as the candidate for future prime minister slot. Also, market participants took positively to the possible announcement of election date by the Election Commission of Pakistan.

Published in Dawn, November 2nd, 2017