KSE index nears 6,900

The profit-taking did not allow the index to sustain the 6,900 mark as KSE-100 index, after registering a net gain of 25.61 points, finally closed at 6,887.58 points on Tuesday. The KSE-100 index increased by 25.61 points or 0.37 percent to close at 6887.58 points as compared to 6861.97 points a day ago. The business volume amounted to 666.345 million as against 742.203 million of the previous day. Whereas the market capitalisation stood at Rs 1,896.787 billion as compared to Rs 1,891.751 billion of the last day.
Initially, following the previous day's bullish trend, the market opened on a positive note, and soon breached through the psychological barrier of 6900 level to touch its intra-day high of 6937.22 points (+75).
However, the exchange of tough statements between India and Pakistan on LoC cease-fire violation, coupled with alarming CoT figures and highest-ever level of index compelled the investors to adopt cautious approach who opted for the profit-taking to push back the index to intra-day low of 6843.95 points (-18).
The heavy swapping from January to February contracts at future counters, owing to last week of the month was also a major factor responsible for the volatile behaviour of the market, while the non-issuance of any dividend from FFBL further increased the prevailing uncertainty. On the other hand, OGDC remained strong and gained 2.4 percent to support the faltering index.
The total badla investment decreased by Rs 0.63 billion to Rs 35.10 billion as compared to Rs 35.73 billion of the previous day.
According to a stock analyst, technically, the ability of the index to register a high of 6937.22, and the subsequent healthy adjustment has pushed the resistance to 6970-6977, while support has improved to 6825-6833. It is, therefore, recommended to capitalise on adjustment in the main stocks.
However, index is expected to stay in a range of 6800-7000 during the week as the swapping in future contracts might lead a yet another dicey session, he added.
The positive development on privatisation programme can refuel the bulls, while healthy statistics on the FDI and other macro indicators will continue to tempt fresh funds.
Among the volume leaders, OGDC higher by Rs 1.90 to Rs 82.30 on 171.975 million shares, PTCLA lower by 15 paisa to Rs 58.85 on 92.200 million shares, FFBL down by Rs 1.60 to Rs 30.60 on 66.921 million shares, Nishat Mills gained Rs 8.10 to Rs 116.40 on 47.085 million shares, Hub Power up by 45 paisa to Rs 33 on 41.998 million shares, NBP fatter by 95 paisa to Rs 99.40 on 33.973 million shares, MCB harder by 20 paisa to Rs 73.80 on 25.010 million shares, POL easier by Rs 2.25 to Rs 253.00 on 24.101 million shares, DG Khan Cement leaner by 35 paisa to Rs 60.30 on 20.178 million shares, and SSGC down by 90 paisa at Rs 30.65 on 20.109 million shares.