Across-the-board buying, especially in OGDC, helped the KSE-100 index to reach a new record high mark of 5045.49 following active support from financial institutions and leading brokerage houses.
The KSE-100 index registered an increase of 47.58 points, or 0.95 percent, to 5045.49. The volume rose to 632 million shares as compared with 371 million shares of Monday.
The market opened on a positive note and started gaining further momentum on account of reports related to improvement in economic conditions and expected rise in corporate earnings, coupled with relatively lower COT rates.
"We are of the opinion that the increased volumes have suggested a lofty bustle in sideboard items that has increased the possibility of a technical correction owing to overbought situation," said Tariq Hussain Khan, manager research at Live Securities. Some profit taking emerged during the session.
This showed some uncertainty among the investors due to rumours regarding high number of killings of paramilitary forces in Wana, near Pak-Afghan border. However, the market participants remained very bullish in other sectors, helping it to close at its highest level.
Hasnain Asghar of Aziz Fidahusein said that the return of buyers in the orthodox stocks allowed the punters to avoid the high index levels and take fresh positions in the main speculative stocks as the stocks carried low risk thereby allowing the index to make yet another high.
Institutional buying with improved limits in the high-yield stocks recharged the bulls.
Technically, the ability of index to consolidate around 5033-5037 and close above 5037-5045 indicated further likely surge. Index is expected to continue finding support around 5010-5017 while the overhead resistance stays around 5083-5088.
Aadil Ehtesham of Multiline Securities said that the oil, gas, cement, telecom, fibre, textile, sugar and banking sectors all trended in green and spearheaded the advance.
Laggards were harder to come by but included stocks like ICI, KESC, SEMF, Telecard, Dewan Motors, Bosicor and TRG.
The market took cue from positive headlines that OGDC had discovered huge deposits of oil and gas at Lala Jamali, near Chotiari dam. With this discovery, Pakistan would have additional 560 barrels per day and 11.2 million cubic feet per day gas.
Moreover, the country set record sugar production at 4.1 million tons after harvesting good sugarcane crop resulting from heavy rains of last year and improvement in supply of irrigation water.
OGDC moved up to Rs 59.05 form Rs 56.35 on business of 169.590 million shares; PTCL rose 65 paisa to Rs 40.30 on turnover of 61.697 million shares; D.G. Khan Cement closed at Rs 50.80, ie higher by Rs 1.55 on a volume of 44.792 million shares; FF Bin Qasim rose 50 paisa to Rs 21.40 on total deals 39.108 million shares; and PIAC showed an increase of 60 paisa to Rs 25.95 as around 37.817 million shares changed hands.
Comments
Comments are closed.