Mixed trend prevailed on the Karachi Stock Exchange (KSE) on Tuesday with index oscillated several times between thee negative and positive zones It finally closed at 10507.09 points after gaining 9.46 points. Banks and cements contributed positively to the total index''s surge while exploration scrips came under heavy battering.
The turnover increased by 79.962 million shares to 235.130 million shares as compared to 155.168 million shares on Monday. However, the overall market capitalisation decreased by Rs 1 billion to Rs 2.940 trillion as against Rs 2,941 trillion recorded a day earlier.
153 scrips closed in negative column, 101 in positive territory while the value of 34 scrips remained unchanged with the total 288 active counters on board. Shahzad Chamdia Securities chief executive officer Ahsan Mehanti said profit-taking prevailed in the oil sector.
Regional political situation in the province was also cautious for investors. International political situation also one of the reasons, which affected the share market. Because of better profit expectations, banking and cement sector attracted investors, he added.
Tanveer Abid of Live Securities said the NBP was the star performer of the day with the scrip depicting 2.7 percent upsurge to Rs231.50 and remained the most active scrip on the board. Other banking scrips like MCB Bank and BoP also gained 1.6 percent and 1.1 percent, respectively to close at Rs226.25 and Rs83.40 while Faysal Bank decreased by Rs1.65 to close at Rs59.10.
Exploration scrips went through a phase of profit-taking as OGDCL, PPL and POL declined 0.7 percent, 2.1 percent and 2.5 percent to Rs142.70, Rs256.50 and Rs363.05, respectively. PSO performed extremely well for the third consecutive day by gaining Rs13.35 to close at Rs378.
Buying spree was also evident in the telecom giant PTCL as the scrip posted 3.2 percent increment to Rs43 with healthy volumes at 17 million shares. Cement scrips remained bullish throughout the day as D.G. Khan cement, Lucky cement and Maple Leaf cement posted respective increments at Rs3.80, Rs1.75 and Rs0.90.
Trading volumes in the ready market were also higher at 235 million shares compared to 155 million shares on Monday. Out of 265 scrips traded on Tuesday, losers outnumbered gainers with a margin of 3 to 2.
Tariq Husain Khan of Atlas Capital Market said after the positive beginning of the week on Monday, the index remained under pressure throughout the day, but closed 9.5 points up as tensions prevailed on the bourses due to non-implementation coupled with the new developments appeared on province''s political scene.
Banks and cements remained in the limelight and dominated the rally. The NBP led the index by volumes and surged by Rs6.10 followed by MCB Bank that also increased by Rs3.45 to close at Rs231.50.
OMCs still remained the star performer, particularly the PSO, which touched its upper circuit due to widespread rumours regarding its excellent corporate earnings and handsome payout. It managed to close at Rs378.85, up by Rs14.20. Cements also recovered where the sector leaders, D.G. Khan cement and Lucky cement outperformed and surged by Rs3.65 and Rs1.75, respectively.
Hasnain Asghar Ali at Aziz Fida Hussein & Company said buying spree initiated by the oil and gas exploration and marketing stocks continued their opening on positive note as its upcoming results invited renewed buying interest.
The news that LHC has set aside a decision of MCA against cement manufacturers allowed the cement stocks to join the rally, while despite tough stance of the SBP on monetary situation, commercial banks stayed in the limelight.
Technically, however, index faced stiff resistance around 10550-10557 points although after desperate attempts the index did breach the resistance and made an intra-day high of 10589.5, gaining 93 points. Absence of follow-up support never allowed the index enough strength to register a positive closing above 10500 points.
Technically, however, index will continue to face resistance around 10550-10557 points while major support will come around 10327-10333 points, political developments will, however, dominate proceedings while excitement of healthy announcement about payout might not allow an extended bearish spell.
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