The share market on the first day after Eid holidays posted appreciable gains on corporate results announced last week and on rumours that different options were discussed in Islamabad to achieve financial close of PTCL sell-off.
The KSE-100 index recorded an increase of 227.40 points, or 2.7 percent, to 8664.02 from 8436.62 of last Wednesday. The market opened after four-day closure on account of the Eid-ul-Fitr holidays. The business rose to 529 million shares as against 253 million shares.
Hasnain Asghar from Aziz Fidahusein said that although the surge was mainly speculative, presence of buyers on dips allowed the punters to accumulate main stocks on strength thereby leading to healthy turnover.
The rumours regarding different options being considered by the Privatisation Commission to be offered to Etisalat for smooth transfer of management invited buyers in the telecom giant. Buying in PTCL allowed the index to resist initial pressure as badla holding did make its way into the market due to an air pocket opening.
Technically, the index would continue to face resistance around 8733-8737 while support would come around 8550-8557.
Abbas Raza, research analyst at First Capital Equities, said that on the first day after the festivities, the market commenced amid an expression of total confidence with interest in all core pivotals that rocketed the market to 88 points at 8524. Benchmark 100 index participants with absolute keenness and self-belief sought PTCL, PPL, NBP, BOP, MCB, FFC, OGDC, POL, PSO, DGKC and FABL that kept the bourse buoyant and resilient.
KSE-100 contestant's eagerness in banking, E&P, and cement sectors was in anticipation of good corporate results and upon optimistic reports of PTCL privatisation news vis-à-vis Etisalat and Privatization Commission meeting in Abu Dhabi.
The market once again attracted an upbeat sentiment that sent FABL, DGKC and FCCL to their upper locks, while generating handsome volume in PTCL. Benchmark 100 closure above 8600 gave the market strength and vigour to further appreciate. "That is not to say that the market won't correct or would be less volatile." A good technical rebound south should be taken as opportunity to purchase selective blue chip stocks with caution along with profit and stop loss margin in mind.
"This shows a pleasant mood by the market's participants as indicated from the fresh accumulation witnessed across the board. Banks, cement, E&P and OMCs, all moved up with notable gains," Tariq Hussain Khan, research analyst at Atlas Investment Bank said. Among the major contributing factor was the buying interest in PTCL because of fresh talks between Etisalat and government officials.
According to market sources, the talks on PTCL privatisation have concluded and referred to the Prime Minister who is expected to finalise the deal on Tuesday or Wednesday.
OGDC was the major contributor as it added 73.45 points to the KSE-100 index, followed by PTCL with 32 points.
D G Khan Cement moved up to Rs 99 from Rs 94.30 on a volume of 53 million shares. NBP climbed to Rs 166.50 from Rs 160.75 on turnover of 44.6 million shares. PTCL finished at Rs 60.25, ie higher by Rs 2.10 on trading of 42 million shares; OGDC denoted an increase of Rs 4.20 on deals of 37 million shares; and MCB Bank lost Rs 1.10 to Rs 150.80 as around 26 million shares changed hands.
Comments
Comments are closed.