The share market ignored the resignation of Sindh chief minister and continued its journey to positive side and attracted heavyweight buyers to remain in the arena.
On the second consecutive 'positive day', the KSE-100 index gained 33.32 points to 5450.05. The volume of shares traded also increased by over 10 percent to 436 million shares.
The market opened on a positive note and remained positive for certain period but it started sinking by midday because of some offloading in cement sector by big players. The market lost as much as 19 pints for a brief time during the day.
However, some big shots entered the market and started purchasing scrips, which lifted the market quickly and ended by bagging over 33 points.
Some analysts observed that the removal of Sindh chief minister and the PIB auction kept the market under pressure throughout the day. Offloading in the sideboard stocks and fresh buying in the main stocks, however, indicated healthy upcoming sessions, they added.
Absence of buyers in the side board stocks, however, forced the weak holders to offload their holdings at the available rates, thereby forcing the index to make an intra-day low of 5397. "Fibre, fertiliser, gas and petroleum giants received fresh buying. Cement stocks, however, saw consolidation of levels," commented Hasnain Asghar Ali of Aziz Fidahuein & Co.
"But across the board activity allowed the market to invite buyers and register closing at psychological 5450," he added.
Another analyst said that by midday the market slowed down and got into negative column. However, with the news of the scrapping of T-bills auction scheduled for the day, the market once again moved into the positive.
Trading volume picked up moderately from previous session to reach 436 million. National Bank, one of the volume leaders of the day, was up Rs 2.25 closing at Rs 66.05. Most cement stocks remained under pressure with Gharibwal closing at its upper circuit breaker and Zeal Pak closed at its lower. Gas sector stocks, Sui Southern and Sui Northern, performed well for the second day after the news that the Government is willing to give international guarantees for gas pipelines passing through the country, from Iran to India via Pakistan.
"With buying witnessed at the end of the day and the market closing on a high note, we expect that the market will remain positive in Wednesday's session," said Arjumand B Habib of First Capital Securities.
"Contrary to market's expectations, the market encountered a series of intra-day corrections because of continued profit taking by big players in cement stocks in view of the unclear picture after Sindh Chief Minister's resignation," said Tariq Hassan Khan of Live Securities.
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