The selective buying in oil, gas and banking stocks helped the index record over one percent gain as the support from leading market players and financial institutions witnessed on most of the counters.
The KSE-100 index showed an increase of 79.80 points or 1.02 percent to 7884.21 as against 7804.41. The volume amounted to 367 million shares as compared with 429 million shares of Wednesday.
Humayun Soomro from Akbarally Cassim, said the fall in steel prices and attractive PE multiples stirred interest in the auto sector especially in Dewan Farooque Motors resulting in its closing at upper lock. Interest in the textile sector continued due to expectation of good result. Speculation of good profits due to good agriculture season resulted in speculators closing Engro at upper lock.
The shares worth Rs 1.9 billion were not financed in CFS market due to complete utilisation of shares worth Rs 25 billion.
Major weight in un-financed scrips was 30 percent, 20 percent, 16 percent and 15 percent in Bank of Punjab, PSO, PPL and NBP respectively. As regards the CFS market, a significant decrease of 46 percent was observed in Bank of Punjab, with a total decrease in value of shares by 0.84 percent.
Hasnain Asghar from Aziz Fidahusein, said the capping in CFS invited resistance to the upward movement in the index. Healthy corporate announcements and presence of buyers on dips, however, allowed the index strong support around 7770-7777.
Majority of the stocks achieved the upper breaker levels might not sustain inflated levels in case the punters driving the stocks make an exit, sentiment has been able to invite market participants in the rally.
Technically, the index would continue to find support around 7825-7833 while mild resistance stays at 7903-7910. The reduction in difference between T+3 and September Forward indicates a short position in forward, therefore, day end short-covering on Friday can allow index a four-digit change. The Opposition's strike call may, however, hit the turnover.
Tariq Hussain Khan, research analyst from Atlas Investment Bank, said that companies belonging to Nishat Group saw another ally with MCB, Nishat Mills and Nishat Chunain leading the way. The shares were up because of the companies would report higher earnings.
Another rumour in the market was regarding the issuance of bonus shares by Nishat Mills, which remained unconfirmed. The announcement of 8.5 percent strategic sale of PTCL (A) shares by the government brought upsurge in share price of PTCL, closing at Rs 66.15.
PTCL gained 60 paisa to Rs 66.15 on a volume of 49 million shares, NBP climbed to Rs 125.05 from Rs 122.60 on a business of 48 million shares, OGDC Rs 1.05 to Rs 111.50 on a trading of 28 million shares, BoP rose 90 paisa to Rs 104.50 on a turnover of 26 million shares, and DG Khan Cement finished at Rs 65.05, ie higher by 50 paisa on deals of 25 million shares.
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