The investors in stock market adopted cautious approach on Friday, ahead of bidding for PTCL on Saturday, as guessing game started on reference and bid price of the telecom giant forcing the equities to move in a narrow band. The KSE-100 index rose 67.82 points, or 0.93 percent, to 7398.73 from 7330.91 points. The volume amounted to 260 million shares as against 223 million shares of Thursday.
The market during the first hour of the session moved in a narrow band, rather reaching the negative territory, over the rumours that only two companies had submitted earnest money and there was a possibility that the bidding would be postponed. However, the official statement, saying that three companies--Etisalat, Singtel and China Mobile Telecommunication Co--had submitted earnest money, boosted the share prices and the index at the end of the first session closed with a gain of 86 points.
During the second session the market touched a high mark of 101 points as rumours circulated in the rings that the government would fetch $2 per share during Saturday's bidding. But, selling pressure before the close of the market clipped gains as several players offloaded their holdings, reducing their portfolio on fear that the government might receive lower bids from overseas investors.
However, these were only apprehensions because punters across the board were of the view that the government would fetch a price ranging from $1.5 to $2.5 per share.
Hasnain Asghar from Aziz Fidahusein said that the Saturday event would dictate the next direction of the market as after nine years finally the telecom giant is about to go through the landmark sell-off. A healthy bid above market expectation would not only allow the telecom giant to invite buyers the companies cured in for privatisation. PSO, OGDC, PPL, SNGP and SSGC would also invite activity thereby allowing the index to stage a rally. Looking at the buying eagerness and the growth potential that the telecom giant has a bid of $2 and above is expected. Technically, index is likely to face major resistance around 7747-7754 while major support stays around 7210-7217.
Tanvir Abid, head of research at Live Securities, said that PTCL investors were comforted by reports that its bidding schedule was intact and that three parties had deposited earnest money. Things would be cleared by Saturday after PTCL bidding. Investors were keeping their fingers crossed in this regard.
PSO saw some buying and recovered Rs 5.60 in the aftermath that oil prices remained unchanged.
PTCL gained 30 paisa to Rs 67.30 on a volume of 127 million shares. OGDC climbed to Rs 103.65 from Rs 101.70 on turnover 44 million shares. NBP lost 40 paisa to Rs 101.10 on business of 17 million shares, PPL moved up to Rs 213.50 from Rs 208.90 on deals of 14.9 million shares, and PSO closed at Rs 375.60, ie higher by Rs 5.60 on trading of 14.6 million shares.
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