Renewed buying in the banking, cement and gas sectors on Wednesday helped the stock market to come out of the long bearish spell, increasing the tally of gainers as compared with losers. The KSE-100 index rose 36.93 points, or 0.69 percent, to 5351.33 as compared with 5314.40. The volume improved to 232 million shares as against 178 million shares.
The bonus issue led rumour in the banking stocks--Askari and Bank of Punjab--allowed the sector to invite turnover, said Hasnain Asghar of Aziz Fidahusein. Lack of buyers' interest on strength initially, however, never allowed the index to consolidate which made a short visit to the negative territory.
The ability of the index to form strong base around 5333-5339 and register a closing above 5350 might allow the index to test its immediate resistance of 5383-5388. Healthy announcement by the petroleum giant would allow the index to breach psychological 5400 figure. Announcement-led buying in the banking stocks and ability of the cement stocks on dips while low turnover should surge capitalisation.
Announcement of Fauji Fertiliser and PSO is likely to dominate the trading session on Thursday.
Cyra Patricia from Live securities said that the market moved in both negative and positive columns. Continued profit taking from punters kept investors under pressure in the later part of the session, as the index remained static for quite a while.
Better than expected earnings in cement may provide further room for investment in the coming days. PSO and Fauji moved in a zigzag fashion as investors await their results due on Thursday.
NBP was the pick of the day as about 44 million shares changed hands after the bank announced to upgrade the number of its ATM installations in the country and would launch an open-end mutual fund of Rs 1.5 billion to Rs 2 billion sent the scrip skyrocketing.
Humbal Haroon from Akbarally Cassim said that speculative interest was witnessed in cement stocks. However, the rally soon diverted to the banking stocks where investors and retailers actively participated. Dividend announcement of 2.5 rupees from Engro did not spark interest, as the second quarter earnings of the company were not impressive. Nishat Mills also announced its nine months results.
The badla decreased by 330 million rupees whereas badla in NBP rose by 14 percent as the high volumes in the ready market attracted investors.
NBP moved up to Rs 73.55 from Rs 71.60 on volume of 44 million shares; Bank of Punjab gained Rs 1.10 to Rs 66.30 on trading of 20 million shares; D.G. Khan Cement finished at Rs 55.70, ie higher by Rs 1.60 on deals of 19 million shares; Lucky Cement denoted an increase of Rs 1.30 to Rs 39.70 on turnover of 15 million shares; and PTCL rose five paisa to Rs 44.35 on transactions of 12 million shares.
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