The share prices moved in a tight range during the first session of the week but turnover was on the higher side, indicating immense interest from investors in the scrips which have announced their financial results. The KSE-100 index rose 9.80 points, or 0.18 percent, to 5468.12 as compared with 5458.32 of Friday. The volume amounted to 225.797 million shares as against 117 million shares.
Hasnain Asghar from Aziz Fidahusein said that the issuance of exploration licence to OGDC allowed the market men to further drag the index.
The market mover OGDC initially got institutional buying, thereby offering no resistance to the index, and the high of 5503 (45 points) was registered during early hours.
The market continued to get support from corporate announcements, although the market thoroughly consolidated around 5490-5496 but failed to charge the resistance of 5503-5510 as the quarterly results of PSO and National Bank, though healthy but without pay out, disappointed the market men.
The badla rate became the excuse for the intra-day adjustment. The index, however, successfully found support around 5450-5457.
The hedging from October to November futures is likely to restrict the index from any major breakthrough.
Major support continued to stay around 5425-5433. Askari Commercial Bank is likely to dominate the proceedings on Tuesday as the third quarter announcement is likely to carry payout required to increase capital.
The announcement of Bank Alfalah carrying 25 percent bonus and 25 percent right invited investors on dips.
Ahmed Ashraf Sheikh from Akbarally Cassim said that the market opened on a bull note as punters jumped to accumulate scrips in expectation of healthy announcements.
However, after the first hour major slowdown was witnessed in the volumes, and selling pressure started. Result announcements from Bank Alfalah, PSO and NBP were inline with the market expectations. It was observed that the market had already added the result premium to these scrips and upon announcements selling pressure was witnessed. This was a clear indication that the market had become extremely proactive.
The badla decreased by 350 million rupees. "There was badla decrease in NBP by 5 percent and we recommend a buy on dip strategy. Overall, there was badla decrease in almost all major blue chip companies.
The badla rates slid as the rates in the money market eased, bringing the weighted average down by 2.27 percent, to 11.96 percent.
Aadil Ehtesham from Multiline Securities said that index after making some unsuccessful attempts to breach 5500 level on strong volume prompted profit selling in the market.
Little profit selling before long unfolded market for broad-based selling pressure which sponged down index earlier gains considerably.
OGDC showed a gain of 85 paisa to Rs 67.20 on a volume of 55.241 million shares; NBP moved up to Rs 71.20 from Rs 70.55 on trading of 31.561 million shares; Askari Bank denoted an increase of Rs 3.05 to Rs 90.25 on business of 22.756 million shares; Chakwal Cement gained five paisa to Rs 8.95 on deals of 14.938 million shares and PTCL lost 35 paisa to Rs 40.55 on transaction of 11.815 million shares.
Comments
Comments are closed.