Investors adopted cautious approach at Karachi Stock Exchange and the last session of the week on Friday closed with marginal gains, and difference between losers and gainers was quite narrow but presence of institutions was witnessed in fuel, gas and telecom stocks.
The KSE-100 index recorded an increase of 6.13 points, or 0.13 percent, to 4570.15 as compared with 4564.02 points of Thursday. The volume amounted to 232 million shares as against 239 million shares. The market capitalisation recorded an increase of Rs 2 billion to Rs 976 billion.
Fahad Khan, research analyst from WE Financial Services, said that the market closed with small gains at the weekend, as investors remained cautious in accumulating fresh positions in PSO owing to uncertainty regarding its bidding date. Buying trend continued in sideboard items with companies such as Javed Omar Vohra, IGI Insurance and Ferozsons Laboratories topping the list of gainers.
Cement sector stocks came in for beating as investors booked profits in Maple Leaf, D.G. Khan, Lucky and Cherat Cement. The ongoing positive trend of the market, despite selling pressure in leading scrips, was encouraging.
"WE maintains our bullish view on the long-term direction of the market, on account of positive factors such as significant reduction in political risk, coupled with consistently improving economic fundamentals of the country."
Hasnain Asghar of Aziz Fidahusein said that tempting investment environment and ability of the market to digest the change in PSO bidding scene allowed the punters to further drag the index which at one stage made an intra-day high of 32 points.
Institutional buying in the under-valued speculative stocks invited the jobbers, thereby allowing trading opportunities. The last-day phobia, however, forced an adjustment. Buying around 4550 allowed the index to consolidate and register a healthy closing 4570.
Technically, index will continue to find support around 4550-4457 while resistance stays around 4596-4604.
The ability of the index to open above 4577 and invite turnover above 4580 will allow the index to make new high. News on PSO privatisation can invite swift surge.
Shahab Farooq, research analyst from First Capital Equities, said that Sui Northern Gas remained bullish on news that the company is retiring its expensive loans to World Bank and expectations of higher profits.
PTCL, Hubco and OGDC remained in positive column which helped the index to close in positive following short covering staged in during the last half an hour of the session.
PTCL on business of 61.872 million shares gained 35 paisa to Rs 37.25; Sui Northern Gas on turnover of 24.098 million shares rose by 50 paisa to Rs 44.30; Pak Oilfields moved down to Rs 231.20 from 233 on a volume of 10.436 million shares; Bosicor Pak denoted an increase of 40 paisa to Rs 25.40 on trading of 8.626 million shares; and Hubco rose by 20 paisa to Rs 38.80 on total deals of 8.622 million shares.
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