The share market closed on a positive note on Monday but for the third time the KSE index failed to sustain the 7900 level because of selling pressure in some of the investment stocks.
Though the KSE-100 index was unable to breach its very important barrier of 7900 on closing basis, it was successful to close above the 7850 level despite a severe profit-taking spell that took place in the last hour. Consequently, the benchmark KSE-100 closed at 7892.57 with a net gain of 3.32 point. Trading volumes also witnessed a slight dip to 275 million shares, showing a decline of 8 percent compared with Friday's turnover. DGKC was the major leader in terms of volume and value because of excellent earnings prospects.
TRG, UBL, Dewan Motors, Pioneer Cement struck their upper limits with relative stable volumes. However, NBP, OGDC and POL witnessed selling pressure, probably due to profit-taking by investors. About 157 companies closed in positive territory while 107 closed in the red.
Hasnain Asghar from Aziz Fidahusein said that introduction of new risk management tool did impact the market movement. However D G Khan Cement invited healthy turnover on expectations of healthy dividend. The board meeting of the company is scheduled for September 19.
The main stocks and even banking sector stayed under pressure on likely adjustment to reduce extra fat. BOP, however, on basis of healthy fundamentals invited fresh buying towards the end, while low volume strength restricted an upside. Technically, the index would continue to face resistance around 7903-7910 while immediate support stays at 7870-7877.
Higher sales reported by cement sector triggered buying in cement sector, with D G Khan Cement, Pioneer Cement, Lucky Cement and Cherat Cement posting decent gains, while smart activity was seen in Suis following the time frame announced by the working group to finalise deals for laying Iran-Pak-India gas pipeline.
Humayun Soomro from Akbarally Cassim said that Rs 1.8 billion worth of CFS was not financed on Monday due to Rs 25 billion cap. Major scrips that were not financed were PSO, BOP, PPL and DGKC at 28 percent, 26 percent and 13 percent, respectively. Overall increase in total value of leverage market increased by one percent.
D G Khan Cement rose by Rs 2.30 to Rs 68.70 on the volume of 65 million shares. PTCL gained 20 paisa to Rs 65.60 on business of 24 million shares. Fauji Cement increased 45 paisa to Rs 15.05 on trading 19 million shares; NBP moved down to Rs 124.75 from Rs 126.20 on deals of 24 million shares; and Nishat Mills climbed to Rs 90.50 from Rs 89.25 on turnover of 15.8 million shares.
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