Fresh buying interest in banking stocks and cement sector put the local share market on an upward path on last trading day of the week and the year 2005, with the index gaining 0.64 percent while turnover 35.36 percent at the close.
The LSE-index once again crossed 4500 points level to finally finish at 4500.20 as compared to its Thursday's closing of 4471.34 points, registering an increase of 28.86 points. Volume improved to 44.601 million shares from 32.948 million of the previous session, denoting a net increase of 11.652 million shares.
The market responded positively to the statement of President Musharraf with regard to construction of new dams, which triggered buying spree, especially in banks and cement stocks.
However profit-taking was also seen during the session, which mean investors were still confused and not ready take positions confidently till the issue is resolved once for all. Whether the government will be able to resist the pressure of the opposition and small provinces or not on the issue of dams, is the factor forcing investors to remain in low profile for the time being, analysts said.
An analyst said the week ended with a bullish note, which is a healthy sign and indicates investors' interest and the market may perform well when it re-opens next year. Lucky Cement and Bank Alfalah were the top gainers of the day while UBL and Nishat Mills were the major losers.
After an eventful calendar year, the market gained 54 percent which is highest among all Asian stock markets, said Ahmed Nabeel, head of Operations, Invest & Finance Securities Ltd.
On first January the KSE index was 6218.40 and on the last trading day of the year, it ended at 9556.06. The highest index level 10510.85 was on 16th March and highest closing was 15th March of 10304.72. After its peak on 15th March, the market started falling like nine pins and touched its lowest index level on 20th April at 6702.00.
Out of 34 sectors, 27 went up and seven were in the minus column while best performing sector was banks which gained 200% capitalisation followed by cement and OMCs with 86 % and 54 %, respectively, he pointed out.
He said that the market future outlook for Ist quarter of 2006 seems pretty bright and bank, cements and oil & gas exploration sectors look good due to their corporate results, earnings, growth and foreign investors interest. According to him, New Year's early 10 days look unpredictable due to SECP- KSE row, Eid holidays, absence of foreign funds etc.
However, he viewed that one should not hesitate to buy on dips. OGDC, PPL, Lucky cement, DGK Cement, FFBL, JDNS, MCB, BAFL and SSGC etc seem attractive for investment while the KSE index might improve to 12,000 and even above by March end 2006, he observed.
Out of a total of 105 trades scrips, 23 improved their worth, 28 landed in minus column while 54 did not change their overnight positions. Major gainers were Lucky Cement which improved by Rs 2.60, Bank Alfalah and Allied Bank Rs 1.50 each, National Bank Re 1.00 and Pakistan Oilfields Rs 0.90. In minus zone, UBL shed Rs 1.50, Nishat Mills Rs 1.15, Pakistan Industrial Credit Re 1.00, Adamjee Insurance and PPL Rs 0.90 each.
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