Bulls entered the market in vengeance, and index recovered almost all the losses sustained on Wednesday's session as the financial institutions found price levels quite attractive to make capital gains.
The KSE-100 index registered an increase of 142.87 points or 2.63 percent to 5575.81 as against 5432.94 of Wednesday. The volume amounted to 710 million shares as compared with 717 million shares.
Hasnain Asghar from Aziz Fidahusein, said the bears fully exploited the badla situation, and exerted further pressure, offloading from the carry over holdings followed by short selling led to a further erosion of 100 points and the index made a low of 5333 (-100).
The presence of institutional buying on dips in the main stocks, however, invited the support and the index consolidated around 5333-5365, and the index successfully wiped off initial losses, buying in the high volatile stocks invited an across the board short-covering, and the index gained 143 points, he added.
Technically, the ability of the index to recover 242 points depicts further strength as the remarkable recovery has pushed the resistance to 5647-5655.
It is, therefore, recommended to accumulate high yield speculative stocks as the early recovery will re-charge the punters, thereby insuring further surge in the growth stocks, while the fund managers to move with the movement are likely to buy main stocks, said Hasnain Asghar.
Tariq Hussain Khan, manager, research at Live Securities, said the market started its positive journey after a massive decline, adding a positive report by the World Bank on Pakistan's economy and better than expected earnings in blue-chips created enthusiasm among the investors community, lifting positive sentiments.
A significant decrease in CoT volumes and rates were also allowed the investors to build positions, he said, adding though the trading volume remained low, the business will increase as many players of the market remained sidelined.
Aadil Ehtesham of Multiline Securities, said the immediate downside risk appears limited, adding the seasonal strength and for the lack of any real selling pressure especially in the last hour of the trading suggests that a majority of investors are probably more willing to risk a random day of retracement while maintaining long positions in anticipation of additional upside.
Strength in PSO, OGDC, Admajee, Engro, ICI, PIAC, Fauji and Fauji Fertiliser Bin Qasim had propelled the index forward, and laid the groundwork for the broad-based advance, he added.
OGDC moved up to Rs 71.25 from Rs 67.15 on a turnover of 115 million shares, DG Khan Cement remained unchanged at Rs 60.15 on a trading of 59 million shares. Hubco suffered a decline of 45 paisa to Rs 35.85 on a volume of 58 million shares, Fauji Cement fell 65 paisa to Rs 16.45 on a business of 56 million shares and PTCL rose 35 paisa to Rs 43.95 on deals of 55 million shares.
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