The news regarding PSO privatisation on Wednesday gave a positive outlook to the share market from the beginning of the trading session and the KSE-100 index breached the 10,600 points mark.
Bullish trend continued at the market and the KSE-100 index surged by 26.52 points to close at 10,617.11 points level, while the KSE-30 index closed at 13,345.06 points level, up by 54.02 points.
Overall trading volume was significantly higher by 34 percent to 223.554 million shares from 166.923 million shares traded a day earlier. It is pertinent to mention here that the ready market volume crossed the ''200 million shares'' mark after 26 trading sessions.
Market capitalisation increased by Rs 7 billion to Rs 2.909 trillion. Gainers outnumbered losers as 150 scrips advanced, 116 declined, and the value of 48 scrips remained intact. PTCL was the star performer with turnover of 17.919 million shares. However, the scrip closed Rs 0.10 down at Rs 51.25.
Abrar Hussain, analyst at Live Securities, said that the index continued its upward march as the news regarding PSO''s privatisation gave a positive outlook to the market. Healthy activity was witnessed in PSO with the volume touching approximately 10 million shares. The scrip closed Rs 5.80 higher at Rs 322.00, after marking high and low at Rs 328.80 and Rs 315.00, respectively. PTCL depicted a mixed trend. The scrip remained firm, initially, and made Rs 52.20 intra-day high, but closed Rs 0.10 down at Rs 52.10 on profit taking.
Oil scrips remained under pressure throughout the day on wilting in crud oil price in the international market. OGDC and POL lost Rs 1.35 and Rs 2.20 respectively to close at Rs 117.55 and Rs 341.50 while PPL gained Rs 2.15 on late buying.
NBP and MCB remained firm most of the trading session, but closed 2.8 percent and 1.9 percent lower on profit taking. On the other hand, Faysal Bank, Bank Alfalah and United Bank increased by 1.4 percent, 1.2 percent and 1.9 percent respectively with decent volumes.
Hasnain Asghar Ali at Aziz Fidahusein said that the anticipation of a downward adjustment in cost of trade at the local bourses certainly improved the sentiment as the local players continued to increase their stakes in the main stocks. The privatisation story in PSO allowed the market men to take chance as the prospective buyer already has a series of companies listed at the local bourses. Therefore, this decision of forward integration will certainly improve the health of the market. The day again witnessed a consolidation in almost all main stocks. Increase in CFS, however, forced an adjustment towards the end. Discounted levels allowed the index to find support on dips and the index managed a positive closing. The threats increased CFS amount. Reduction in oil prices in the international market and certain economic indicators all can be ignored if the working of the local bourses with regard to cost (taxes) and risk management is addressed and settled with a view of increasing the turnover.
Technically, the index will continue to find support around 10496-10510 while overhead resistance stays at 10710-10717. Focus should be on the main stocks with healthy fundamentals.
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