The share prices on Thursday recovered sharply under the lead of cement, fuel, textile and gas companies following active support from the financial institutions and leading brokerage houses.
The KSE-100 index gained 49.18 points or 0.90 percent to reach 5,507.60 as compared to 5,458.42 on Wednesday. The volume amounted to 861 million shares as against 765 million shares.
Hasnain Asghar of Aziz Fidahusein said that the landmark bidding for the mobile phone licences and growing foreign interest in telecom sector and growing cement industry allowed the index make a new historic high of 5,523 (62 points).
Inflated levels did face resistance and the midday witnessed a dull market with an average of 5,510.
Although the ongoing surge backed by anticipation and expectations of either consistent or improved earnings the improving country fundamentals have created huge crowd on the sidelines waiting to enter, therefore, the current scenario would continue to invite buyers in stocks having potential to perform.
Technically, the ability of the index to consolidate around 5,503-5,510 where market will get support around 5,498-5,504 and immediate resistance falling at 5,333-5,539. Last day offloading might translate into a meagre adjustment.
Tariq Hussain Khan, manager research at Live Securities, said that the market moved in upper columns, suggesting further appreciation till 5,600 as investors built fresh positions in cement stocks at every level.
The higher volumes showed an abnormal behaviour of the market where demand/supply situation seemed to be unequalled throughout the day.
Since the internal and external political hurdles have been eliminated, we expect market might continue its positive drive for sometime during this week.
Shahab Farooq, research analyst at First Capital Equities, said that the market opened with an increase of 30 points with Pakistan Oilfield firing up to Rs 233.70 as it has diversified into cellular business with 40 percent stake in Space Telecom Pakistan.
Later, investors realised the implications on POL regarding financing of licence fees and capacity expansion for the new venture, which is likely to put pressure on the dividend pay out by the company and the scrip witnessed profit taking and closed with a loss of 15 paisa to Rs 228.10.
Aggressive buying was witnessed in the cement sector led by D.G. Khan Cement, Hubco, PTCL, Nishat Mills and OGDC, TRG and Telecard closed at their upper circuit breakers.
"We expect the market to remain positive, as the quarterly results season has approached with good expectations for the oil and gas and the cement sectors."
D.G. Khan Cement rose to Rs 60.30 from Rs 57.60 on a turnover of 120 million shares, Hubco gained 55 paisa to close at Rs 37.90 on a trading of 104 million shares, Fauji Cement 80 paisa to Rs 16.30 on a volume of 87 million shares, PTCL closed at Rs 44.45, ie 15 paisa higher on 77 million shares and Nishat Mills registered an increase of Rs 3.25 to Rs 57.70 as around 49 million shares changed hands.
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