Buying and selling orders matched during last week and cautious approach from seasoned investors reduced the tally of gains where KSE index moved in a tight range while volume was on the lower side because of lack of support from institutions. The KSE-100 Index endured a volatile start to the week, and ended the week on a range-bound note. With the corporate result season over for now, local stock market players looked to the US presidential election to provide some direction to the market. However, once the election result came to pass, the market fell into a range-bound lull. The KSE-100 Index rose marginally by 0.4 percent, or 20 points, during the week to close at 5352.
Badla rates and investment levels maintained their downward trend during the week at both bourses --KSE and LSE.
During the week hectic activity was witnessed in Pakistan Oilfields and Attock Refinery following their decision to participate in the bidding process of National Refinery. The government intends to sell 51 percent stakes in the National Refinery, and the Attock Group plans to bid to acquire majority stakes in the company.
On Monday, trading session might show healthy recovery at the KSE as there would not be any COT pressure.
Cement sector remained strong with DG Khan Cement taking the lead on the back of expectations that construction of either of the two much-talked about dams, Kalabagh and Bhasha, would be announced this week. "Well, if you want to speculate on this news then Lucky Cement seems to be a better buy, as DG Khan has already moved up 3.6 percent to close at Rs 50.40," a leading trader said.
PSO remained strong during last week and for several dealers and traders the scrip was top pick for the month of November. Obviously, Picic Growth Fund (PGF) will rally behind PSO and for those who do not want to risk their money on a large cap stock can buy PGF. Fauji Fertiliser and National Bank are the other two stocks that we believe can rally in the next few days."
OGDC, which was a star in the previous rally, was out of favour as international oil prices have come down reasonably.
Excitement pertaining to President Bush's re-election to the White House was rather short-lived as market trading session was directionless where blue chips and trading stocks fluctuated between five paisa and 80 paisa.
Going forward, the market is not providing any focused direction, and in a dealer's opinion the index would hover within a range of 5250 to 5450, where the average badla rate is likely to stay around double-digit level.
The main reason behind dull movement is that during the current week, the market has three sessions only because of two holidays--birth anniversary of Allama Iqbal and Shab-e-Qadar, and afterwards long holidays on account of Eid-ul-Fitr.
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