The LSE-25 index improved by 51.37 points, closing at 2733.96 against 2682.59 of Monday, while trading turnover increased by 31.839 million shares to 75.339 million as compared to 43.499 million shares traded a day earlier.
Chemical, petroleum, and energy sectors helped the market improvement, while Faysal Bank, Picic, Engro Chemical remained under pressure.
The market opened on a healthy note, but started declining after some time due to selling pressure.
The investors were anticipated bearish trend, and thus they offloaded their holdings to secure their positions. As it was the 'badla day' and the investors were showing less interest in taking fresh positions, they preferred to get out of the market, instead of bearing COT (carry-over transaction) charges.
However, the investors, having been inspired from the institutions, came back to the buying course, and started making fresh entries in blue chips. As a result, the market not only recovered its day-losses, but also showed improvement, and closed in positive zone.
Experts said the market earlier had lost about 200 points, thus technical correction has become due, and these sentiments also encouraged the investors, who provided significant support to the market.
The denial of the Balochistan chief minister about the life attempt has dispelled the panic situation. The investors were also encouraged by the Foreign Office's announcement of not sending its troops to Iraq. Both news would leave a positive impact on the internal law and order situation, thus to provide stability to the stocks, the experts opined.
Advancing stocks were far ahead of declining ones, as out of a total of 86 active issues, 38 companies registered gains, seven landed in negative column, while 41 stayed glued to their positions.
Amongst the gainers, ICI improved by Rs 3.90, Pakistan State Oil gained Rs 2.35, while Adamjee Insurance and Sui Northern were up by Rs 2.10 and Rs 2.00, respectively.
In the negative column, Pak Electron lost Rs 5.20, Engro Chemical declined by 95 paisa, while Faysal Bank and Southern Electric Power were down by 90 paisa, and 25 paisa, respectively.
Fauji Fertiliser Bin Qasim was the market leader whose 17.183 million shares changed hands, followed by Bank of Punjab with total transaction of 9.188 million shares.