KSE index shows small gain

Selling pressure in blue chips forced the index to record small gains on the first day of the week at Karachi Stock Exchange where business was on the lower side as compared with Friday. The KSE-100 index showed a gain of 10.28 points, or 0.18 percent, to 5852.87 as against 5842.59. The turnover fell to 278 million shares as compared with 354 million shares of Friday.
A leading dealer from Elixir Securities said that energy stocks under the lead of PPL, PSO and OGDC remained active throughout the day and MCB in the banking sector saved any massive slide in the index level. Apart from the oil stocks, ace shares like PTCL and Hubco, remained devoid of any momentum.
Soaring index level and all-time high badla seemed to be weighing in on the minds of market participants who were resisting any bold moves. To no one's surprise, Askari Bank almost sank 2 percent, ahead of its board meeting on Tuesday.
Ahmed Ashraf Sheikh, institutional dealer at Akbarally Cassim, said that another range-bound day was witnessed with reduction in volumes to under 300 million shares.
The banking sector was in the limelight, led by MCB with a gain of 1.10 rupees on volume of 29 million shares. Askari lost 1.75 rupees on speculation regarding the announcement in its board meeting on Tuesday. PPL touched the 130 mark as the market expects good corporate results for the company.
The badla increased by 720 million rupees to another record high level of 33.53 billion rupees. There was badla increase in PSO and National Bank by 10 percent and 8 percent respectively as weak holders took positions expecting good capital gains from the stocks. The badla levels and rates are at high levels and caution is recommend in the market.
Hasnain Asghar from Aziz Fidahusein said that country fundamentals and healthy capital gains in recent past have further strengthened the punters. Therefore, chances of a big downfall are minimum while the technical adjustment of 1 percent to 1.2 percent would prove healthy for the index to bounce back with a high intensity.
It is therefore recommended to focus on frontline stocks on dips while low volume strength in main stocks should be capitalised for trading. Both main and second-tier stocks in the banking sector should be accumulated on adjustment. Technically, however, resistance would continue to come around 5867-5877 while support stays around 5790-5796.
OGDC rose 40 paisa to Rs 67.40 on a volume of 36.8 million shares; Fauji Fertiliser Bin Qasim gained 20 paisa to Rs 28.70 on trading of 33 million shares; MCB moved up to Rs 56.15 to Rs 55.05 on turnover of 28.9 million shares; NBP rose five paisa to Rs 76.85 on deals of 14 million shares; and Fauji Cement registered an increase of 10 paisa to Rs 15.85 on transactions of 13.586 million shares.