Bulls dominate KSE

The local share market witnessed a bullish session with healthy volumes and the benchmark KSE-100 index closed at the second highest level of its history of 12,189.29 points with fresh gains of 186.52 points on Wednesday.
The market opened on a positive note and while maintaining its upward trend, the index hit 12,204.04 points intra-day high on the back of across-the-board buying, however, after witnessing profit-taking, in some blue chips, the index finally closed at 12,189.29 points. On the other hand, the KSE-30 index surged by 243.56 points to close at 15,185.82 points.
The market witnessed heavy trading activity as the ready market volume increased to 452.704 million shares as compared to 325.881 million shares and the future market turnover surged to 96.468 million shares against 75.444 million shares traded on Tuesday.
The overall market capitalisation increased by Rs 45 billion to Rs 3.518 trillion. CFS value increased by 8.25 percent to Rs 54.30 billion as compared with Tuesday's value of Rs 50.16 billion, with five highest CFS scrips being NBP, OGDC, PPL, POL and BoP. Trading took place in 351 scrips out of which 210 scrips closed in positive column and 104 scrips closed in negative column while the value of 37 scrips remained unchanged.
E&P giant OGDC, on the back of fresh discovery of gas and condensate from its exploratory well located in Sindh, was the star performer of the day with 58.793 million shares and the scrip surged by Rs 4.35 to close at Rs 124.55. POL and PPL gained Rs 5.30 and Rs 7.85 to close at Rs 339.00 and Rs 265.80 respectively.
The banking sector also performed well as BoP, NBP and Bank Al Falah surged by Rs 2.40, Rs 6.40 and Rs 0.35 to close at Rs 106.25, Rs 250.80 and Rs 55.55 respectively however Askari Bank lost Rs 0.35 to close at Rs 90.75.
In cement sector stocks DG Khan Cement and Lucky Cement gained Rs 1.30 and Rs 0.85 to close at Rs 100.50 and Rs 99.70 respectively. Fauji Fertiliser Bin Qasim gained Rs 0.30 to close at Rs 33.60 while TRG Pakistan surged by Rs 0.35 to close at Rs 11.45.
Pak. Services and National Refinery were the highest gainers which gained Rs 14 and Rs 13.90 to close at Rs 379.00 and Rs 292.40 respectively while Unilever and National Foods were the highest losers which lost Rs 25 and Rs 11.15 to close at Rs 2099 and Rs 211.90 respectively.
Ahsan Mehanti at Shehzad Chamdia Securities said that the market witnessed March results rally as the financial results for the quarter ended March 31 were better than expectations. Oil and Gas sector witnessed fresh buying after foreign interest observed and petroleum policy announced favourably affecting the earnings of OGDC and PPL.
Buyback expected in the auto sector after planned expansion and the record high results in cement stocks invited the investors for fresh buying in the relevant stocks. Banking sector also witnessed fresh buying after NIT performance results and foreign interest observed in the banking industry due to higher spreads and T-bills yields.
Hasnain Asghar Ali at Aziz Fidahusein Securities said that the shift towards energy stocks witnessed on Tuesday inspired many as the availability of sector stocks at discounted rates tempted fresh funds both for trading and placements, expectation of healthy results and growth expected in coming period due to various reasons allowed the market men an easy entry.
The banking stocks soon joined the rally as the news of foreign invasion in the sector stocks left no choice with the local players but to buy even at inflated levels, although the sector stocks are likely to report growth chances of post result selling in the cement and banking stocks should not be ignored, as was witnessed after the announcement of Askari Bank as the results have displayed a growth of 31 percent, despite the outstanding results the stock witnessed a shift from punters hands to those of investors the move therefore resulted in the stock losing some cents on closing.
Heavy buying in the index heavy weights did allow the index to massive surge; heavy breathing within the immediate resistance of 12,196-12,210 forced the index to take a step back on closing. Technically index will continue to face major resistance around 12,327-12,333 while immediate support stays at 11,890-11,896. Ability of the index to open above 12,196-12,210 and invite turnover will allow the index a smooth movement towards the next resistance.