Gains in oil and gas companies' shares helped the market to stay above the 5500 level on Wednesday despite sharp rise in the cut-off yields on three months and one-year treasury bills. The KSE-100 index rose, or 0.34 percent, to 5533.22 as compared with 5514.49. The business rose to 260 million shares as compared with 228 million shares. The market capitalisation improved by approximately Rs 7 billion to Rs 1.540 billion.
Ahmed Ashraf Sheikh from Akbarally Cassim said that the market opened in the positive territory backed by developments on the political front. Scrip price of PPL appreciated as news of revaluation of gas reserves and Wapda agreement sparked buying interest. Fauji Fertilizer Bin Qasim contributed 75 million shares in total volume.
The badla increased by 290 million rupees. There was badla increase in Sui Northern Gas by 7 percent as weak holders took position as annual and quarterly results are expected on Thursday. The badla also increased in Pakistan Oilfields as activity returned in the share after remaining dormant for the last few days.
Tariq Hussain Khan, manager research at Live Securities, said that despite encouraging start, the market failed to touch the 5550 level because of continued profit-taking by general investors. Later on, the market observed range-bound session as a result of expected increase in three-month and one-year treasury bills cut-off rates. The significant increase in PPL gas reserves injected buoyancy in the scrip, boosting the sector's sentiment.
The wobbly movements once again hovered at KSE. The market moved in the range of 5514-5543 level. Ignorance of surge in treasury bills cut-off yield, coupled with stability in volumes was an indication of the market strength at current level.
Hasnain Asghar from Aziz Fidahusein said that the index showed strength where offloading was witnessed during the session as the investors' bid to avoid overnight risk led to adjusted closing. Presence of buyers on dips and expected positive outcome of the talks might refuel the bulls as technically the index seems all set for a healthy session, although index might resist around 5550-5557. The next resistance stays around 5603-5610. It is however recommended to take advantage of low volume movement, while frontline stocks can be looked for investment discounted levels.
"We are of the opinion that the market needs fresh funds to build on gains above the key resistance level of 5500 points. In the absence of this we assume mostly sideways trading unless the KSE-100 index can close above 5560," Aadil Ehtesham from Multiline Securities said.
Fauji Fertilizer Bin Qasim rose 70 paisa to Rs 24 on a volume of 82.894 million shares; OGDC gained 30 paisa to Rs 66.50 on a turnover of 25.576 million shares; Bank of Punjab closed at Rs 61.10, ie higher by 35 paisa on transactions of 11.750 million shares; PTCL lost 20 paisa to Rs 40.60 on deals of 10.945 million shares; and Engro moved up to Rs 108.25 from Rs 107.75 on business of 10.945 million shares.
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