Last half-hour buying in PTCL on Monday on rumour that Etisalat would soon release the remaining payment ignited the share market, helping the index to close above 8200 level.
The KSE-100 index registered an increase of 37.57 points, or 0.45 percent, to 8217.47 from 8179.90. The volume declined to 305 million shares, against 361 million shares of last Friday.
The first bell saw the market open in the positive zone, led by PSO, OGDC and POL. As the market inched up, many participants saw an opportunity to sell on strength due to which POL, PSO, OGDC, PPL, NBP, PTC, DGKC, and BOP took southward course bringing the index to its day''s low of 8138---down 42 points.
The bourse throughout the session gave a very lacklustre performance and traded in the negative zone. However Benchmark-100, at lower levels, created interest in all core pivotals and extreme eagerness in PTCL, on anticipation of good corporate results and payout on September 27. NBP and DGKC aided the market in its recovery, closing above the 8200 level at 8218---up 38 points.
KSE-100 was ripe with volatility and it seemed that it would continue to swing the market if it did not correct in order for it to stabilise and would carry on with its upward movement. Blue chip stocks looked very attractive, and can be bought at correction with stop loss and profit margin in mind.
PTCL was the volume leader, generating 65 million shares, contributing 21 percent of total turnover. It gained Rs 1.40 to close at Rs 66.05 as a result of expected high dividend payout. Other than that, DGKC was also supported well as investors built long-term positions due to strong fundamentals appearing in the form of higher cement demand, and expected to witness a robust growth during current fiscal year. NBP remained on top in the banking sector due to renewed buying towards the end of the day, resulting in a handsome gain of Rs 1.80 to close at Rs 142.30.
PTCL depicted an increase of Rs 1.40 on the back of rumour that Etisalat would soon make partial payment relatinhg to PTCL strategic sale, and take over the company.
Banking scrips continued from where they left last week. NBP showed a lot of intra-day volatility as the scrip marked high and low at respectively Rs 142.50 and Rs 138.95 to settle at Rs 142.30. MCB and BoP showed increase at 0.4 percent and 0.3 percent, respectively. OGDC remained under pressure, depicting net decline at Rs 0.75. PPL showed marginal increase of 0.4 percent. PSO recovered Rs 1.60 from its last closing.
Cement stocks were once again the focus of attention following another news report pertaining to World Bank and construction of dams in the country. D G Khan Cement, Fauji Cement, Maple Leaf Cement and Lucky Cement showed gains of 4.3 percent, 1.0 percent, 1.7 percent and 0.7 percent, respectively.
Engro performed exceptionally well on rumour that it would get gas allocation for setting up a new fertiliser plant. It appeared that the squaring of a significant portion of September futures had not taken place even though the contracts will expire after four days.
Technically, the ability of the index to register closing above major resistance region of 8210-8217 would, however, check yet another major resistance of 8333-8337. Although improving fundamentals would continue to invite buyers on dips, it is recommended to trade in main stocks with healthy fundamentals and good history of payouts. Low volume surge should, however, be capitalised for both trading and investment portfolios.
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