The share market, on its last trading session of 2005, closed with handsome gains as the trend-setters witnessed a rally, which helped the index to end with 59.26 points rise, despite the fact that some investors had adopted cautious approach because of the row between the bourse management and the regulator (SECP).
Karachi Stock Exchange 100 Index added 59.26 points, or 0.6 percent, to 9556.61 at 4 pm local time close of trading. The index, which advanced 53.6 percent in 2005, gained 0.6 percent this week.
Several investors were of the opinion earlier that the index would close on a negative note because of the row between the bourse management and the regulator over the appointment of the non-stockbroker as chairman. However, fresh buying in PTCL, OGDC, and some of scrips belonging to cement and banking groups propelled the market, helping it to stay above the 9500 level.
Rumours were rife that SECP would reject the proposal of the members of the exchange to raise their representatives in the board of local bourse, a condition to help resolve the dispute accepting the SECP ruling barring an old practice of appointment of stockbroker as chairman..
The last session of the stock market for the year 2005 closed on a positive note on expectations of good results from banking oil, gas and cement sectors. Seasoned investors were of the view that as the members of the stock exchange have resolved to approach the doors of justice to fight for their rights for the appointment of a stockbroker as chairman, the market might show some weakness next week.
Expectations were that when the market would open its first session of 2006 it would be on a downward trend as both parties are at a dead end as none of them wants to compromise on the stand each has taken.
Abbas Raza, research analyst at First Capital Equities, said that all major institutions keenly followed KSE-100 year-end close, so as to window-dress their portfolios and seek stocks, which would carry weight. Punters whose added interest further accelerated the market north were of the opinion that it would carry into the new year. GOP's dedicated effort for strategizing economy's expansion and investment would definitely inspire and motivate investors to invest in Benchmark 100, and the placement of OGDC's Global Depositary Receipt (GDR) worth $1 billion is an excellent example of their commitment.
The slight displacement between SECP and KSE, regarding non-member director chairman, and the Kalabagh dam issue, if settled amicably, would not only boost contestants' morale but would also gear up their impetus towards the market. Blue chip stocks in the O&E, Fertiliser, Textile, Cement and Banking sector look attractive and alluring and one can seek these scrip's during correction with profit and stop loss margin in mind.
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