Mixed trend was observed on the Karachi Stock Exchange on Friday. However, the KSE-100 index managed to continue its uptrend, closing at 10641.31 points, up by a nominal 0.60 points, while the KSE-30 index gained 27.74 points to close at 13392.77 points.
The volume at the ready market decrease by 11 percent at 149.996 million shares from 168.510 million shares of Thursday. The market capitalisation increased slightly by Rs 2 billion to Rs 2.917 trillion.
Trading took place in 305 scrips, of which 156 scrips closed in positive column and 109 scrips closed in negative column while the value of 40 scrips remained unchanged.
The market opened on a positive note and hit the 10688.68 points intra-day high. The index remained in the positive zone during the first half of the session. However, massive battering in OGDC, ignited in the second session dipped the index to as low as 10613 level. Nonetheless, the KSE-100 index recovered 28 points to end up breakeven.
Abrar Hussain, analyst at Live Securities, said that Fauji Fertiliser Bin Qasim (FFBL) remained the volume leader with 20.330 million shares changing hands. Investors were optimistic regarding its upcoming full-year FY06 financial results announcement due next week. The scrip gained 3.8 percent to close at Rs 30.25.
Other prominent gainers include Hub Power, SSGC and SNGPL with volumes at 8.5 million, 6.3 million and 1.7 million shares respectively. Hubco increased by 3.7 percent to Rs 30.80 while SSGC and SNGPL closed limit up.
On the other hand, PSO depicted Rs 4.10 decline on profit taking. Exploration scrips remained under pressure throughout the day due to deteriorating crude oil prices in the international market. OGDC and POL decreased by Rs 1.65 and Rs 4.10 to close at Rs 116.00 and Rs 338.60 respectively. However, PPL managed to hold the green territory at Rs 245.70 on the back of its sanguine 1H/FY06 earnings expectations.
Banking scrips depicted mixed performance, with NBP and MCB gaining Rs 1.60 and Rs 0.95, while BoP, Faysal Bank, and Bank Alfalah posted 0.2 percent, 0.1 percent and 0.3 percent respective declines.
Hasnain Asghar Ali at Aziz Fidahusein Securities said that the week managed a positive closing, although the Friday session had to struggle to get a positive symbol 'the Friday-phobia' and high turnover (if compared with daily turnover, which is a victim of high trading cost) CFS. Across the board activity made possible a fraction but positive closing.
Further downward adjustment in oil prices in the international market and comment by PAC regarding PSO's privatisation kept the index under pressure. Positive sentiment, however, never allowed the bears to take charge as an adjustment in the second session invited fresh value buying in oil and gas exploration and marketing stocks and index after a dip of 28 points made a recovery.
Technically, the movement in a narrow band with a comparatively low turnover maintains the resistance around 10710-10717 while support stays at 10496-10510. Reduction in costs and flexibility in working regulations can, however, allow the index to travel north on the basis of healthy fundamentals. Or else, the index is likely to stay range-bound, as low turnover may even force the genuine investor (whenever they want to make an exit) either to sell with force and erode values or to place holdings at discounted levels, while foreign investors will only enter when offered a smooth exit.
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