Profit-taking activity set in as the KSE-100 index showed small pruning on Tuesday after share prices of some of the blue chips heralded fresh gains under the lead of PSO, OGDC and Picic Growth Fund. The KSE-100 index showed a decline of 4.09 points, or 0.07 percent, to 5567.79 as compared with 5571.88 of Monday. The volume amounted to 256 million shares, against 250 million shares.
The market most of the session remained mixed. It opened on a positive note but selling pressure from the punters to book capital gains clipped the share values.
Traders were receiving divergent views over the local oil prices issue. Some were of the opinion that prices would go up while others said that the government would not pass the international oil prices increases to consumers as revenue collection is still showing rising trend and to curb inflation. Fuel scrips such as Pakistan State Oil Ltd recorded appreciation on expectations that the government might raise oil products prices.
Ahmed Ashraf Sheikh from Akbarally Cassim said that the market opened in the positive zone. However, it was not able to sustain the 5600 mark as selling pressure erupted. Rumours were present in the market of the index touching the 6000 mark. "We advise investors to be vigilant as correction is overdue. If the market does not adjust the overbought situation soon, a nosedive correction shall be inevitable." Rumours were also circulating in the market that PSO share price would increase as the government was considering to pass on the PDL level. "We however do not recommend buy at these levels."
The badla increased by Rs 0.17 billion. "There was badla increase in D G Khan Cement and NBP, and we recommend a sell on strength in these shares." There was badla decrease in Fauji by 7 percent as weak holders offloaded their positions and delivery based buying was being witnessed in Fauji. The badla rates fell by 271 basis points as fresh funds entered the market.
Aadil Ehtesham from Multiline Securities said that active buying in pivotals like PSO, Pakistan Oilfields, Sui Northern Gas, OGDC, Hubco, Picic Growth Fund, National Bank, Admajee Insurance and D G Khan Cement gained in their share value but struggled to gain significant ground.
Investors took profits following the 5,600 level resurgence which underpinned the index to take a dip. The index mostly during the day continued to trade with a tinge of caution, especially in the light of three-day badla.
Sui Northern Gas rose Rs 1.30 to Rs 56.65 on business of 27.746 million shares; OGDC gained 15 paisa to Rs 66.95 on turnover 26.983 million shares; Picic Growth Fund denoted an increase of Rs 1.20 to Rs 48.90 on trading of 20.666 million shares; PTCL rose five paisa to Rs 40.35 on deals of 18.248 million shares; and D G Khan Cement moved up by 30 paisa to Rs 51.95 on a volume of 17.223 million shares.
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