With only two sessions last week due to Eidul Fitr holidays, it is difficult to assess the trend, but the index recovered on healthy corporate results and on expectation that the government and UAE-based Etisalat deal is still intact.
No major movement was witnessed in the market throughout the week as the KSE index remained range-bound amid shrunken volumes due to a shortened trading week and offsetting developments. The PTC privatisation fiasco was generally renegotiated between the government and the Etisalat assisted in preventing major declines. The index continued on its gradual march upwards gaining 119 points.
With PTC''s privatisation drive breaking down, as the Etisalat failed to meet the extended deadline of October 28 for payment the market underwent extreme pressure it fell 182 points in the initial hours of the session. However, the support came from positive results posted by MCB, PSO and NBP respectively helped recovered the market. Positive news regarding Engro to receive gas for its power plant led to expectations regarding additional gas for urea manufacturing plant, result in Engro closing position as well.
On Wednesday, the positive news regarding re-negotiation between the government officials and the Etisalat regarding the fate of PTC resulted in the index performing exceptionally well. The index gained 189 points to close at 8436 primarily driven by NBP and Nishat Mills reaching their upper circuit breakers. Investors took fresh positions in all scrips with volumes reaching 236 million shares.
KSE-100 commenced on a strong note up 100 points at 8347 on Wednesday, as all fundamentally strong stocks came into a wall-to-all buying frenzy peaking the market from initial bell. Unlike the previous session, the bourse held in quite well and all participants with absolute confidence and resilience sought OGDC, PTC, PSO, POL, PPL, DGKC, Lucky and MCB while parking NBP, FABL, FCCL and BAFL on its upper lock on closing basis taking the index to 8437 up 189 points. Benchmark-100s technical rebound was geared with utter buoyancy and optimism due to which the market did not witness any selling pressure from either day traders or major institutions, reflecting a sense of self-belief among major contestants, thus routing a northward trend.
Market''s revival upwards had the strength of PTC privatisation news, which even being stalled, would be re-started after Eid holidays and any affirmative report from that end would trigger a good rally or a slump if a negative outcome is announced.
The KSE-100 will actively be keeping an eye on PTC''s privatisation deliberations, in the mean time, blue chip stocks can be bought on correction with stop loss and profit margin in mind, as the market can resist 8500 index level.
Comments
Comments are closed.