The KSE index once again failed to cross the 9000 level as sellers outnumbered buyers on Monday, reducing the overall gains made during the morning session as some of the quarters saw swapping of November futures.
The donors' pledging over $5.8 billion for quake damage reconstruction gave ample room to the exchequer to keep the economic reforms in place for further development.
The market commenced business on a positive note with buying across the board. All core pivotals, OGDC, PTCL, PSO, POL, PPL, NML, DGKC, MLCF, BAFL, PIOC and NBP were sought after with keen interest that took the index to cross the 9000 level where jobbers, punters and institutions saw an excellent opportunity to exit via booking profits at inflated levels.
Abbas Raza, research analyst at First Capital Equities, said that the index due to selling around 9000 was unable to sustain upper levels and most of the blue chip stocks that took off dived south because of which the bourse closed only 27 points in the positive at 8961. The bourse looked heavy around 9000 level and its stationary position at higher stage, where the market was witnessing handsome volume, indicated that various investors seemed to be exiting the market. Therefore, purchases at higher levels in any stock should be done with extreme caution and with prudence.
The Index moved in a volatile manner opening on a very positive note. But then it went through cycles of buying and selling, eventually closing 27 points up at 8961, after momentarily breaching the 9000 barrier. The banking and cement sectors led the rally, with National Bank leading the volumes and closing at Rs 172.65 up Rs 4.85. Cement scrips, particularly D G Khan Cement, remained active throughout the day making handsome gains, but eventually fumbling under selling pressure.
Other cement scrips were also very active namely Maple Leaf and Lucky which closed with some gains. SSGC, Gharibwal Cement and Bosicor closed at their upper circuits, said an analyst from Atlas Investment Bank.
Hasnain Asghar from Aziz Fidahusein said that institutional offloading in banking and cement stocks forced the punters to opt for reduction towards the end of the session. Second-tier cement stocks, however, maintained the bullish stance while NBP thoroughly resisted the inflow and managed a healthy closing. Technically, the ability of the index to open above 8950-8957 did allow the index to charge 9000. Due to certain technical issues the index failed to resist overhead resistance of 8997-9010.
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