The KSE-100 index closed at its new high level of 15,198.86 points level, up by 76.10 points on Wednesday on the back of fresh buying mainly in banking and cement sector. "The market participants welcomed the SECP announcement of the change in implementation strategy of CFS Mk-II and took fresh positions," analysts said.
The share market started on a strong positive note and the KSE-100 index hit 15,262.88 points intra-day highest-ever level. However, the market could not maintain its momentum due to profit taking in some select stocks. On the other hand, the free float market capitalisation based KSE-30 index surged by 142.86 points and settled at 18,587.69 points level.
Trading activity slightly improved as the ready market volume increased to 219.459 million shares as compared to 215.919 million shares traded a day earlier. The futures market turnover increased to 77.332 million shares against 73.050 million shares on Tuesday.
The overall market capitalisation surged by Rs 29 billion to Rs 4.647 trillion. Trading took place in 363 scrips, out of which 175 closed in positive and 148 in negative while the value of 40 scrips remained unchanged.
JS Bank was the star performer of the day with 17.677 million shares and the scrip gained Re. 1.00 to close at Rs 21.00 followed by Lucky Cement, which increased by Rs 0.70 to close at Rs 138.90 with 15.572 million shares. DG Khan Cement surged by Rs 1.60 to close at Rs 111.65 with total volume of 11.925 million shares. The BoP increased by Rs 0.70 to close at Rs 67.65.
In E&P sector, POL and PPL surged by Rs 6.80 and Rs 3.95 to close at Rs 376.40 and Rs 263.70 respectively, however OGDC declined by Rs 0.80 to close at Rs 134.00. PTCL gained Rs 0.70 to close at Rs 45.75. Azgard Nine increased by Rs 0.50 to close at Rs 62.50. Fauji Fertiliser Bin Qasim, however lost Rs 0.45 to close at Rs 45.20.
Rafhan Maize and Jahangir Siddiqui Co were the highest gainers and gained Rs 49.90 and Rs 31.50 to close at Rs 2450.00 and Rs 776.50 respectively while EFU General Insurance and Colgate Palmolive were the highest losers and lost Rs 31.90 and Rs 30.50 to close at Rs 746.00 and Rs 579.50 respectively.
Hasnain Asghar Ali at Aziz Fidahusein Securities said that positive response as planned so was received after announcement of the change in implementation strategy of CFS Mk-II, although cash deposit has been waived in the new structure up to Rs 85 billion, the issue victimising the leverage players of cap CFS however still stays unaddressed as the implementation of the relaxed CFS has been extended till July 08.
Therefore restriction on leverage in the main board stocks will continue for another three months, however most of the stocks those got privilege of CFS Mk-II reflected the joy during the day trade. The delay in implementation due to net practice desired by some will therefore continue to disallow a smooth surge incase the confronting issue on political and law and order fronts are addressed positively.
Rising trend in domestic cement rates per bag and expectation of this rising trend to continue with the growing demand kept the main stocks of the sector alive while mild increase in oil prices in the international market and plans of MOL to develop Manzalai fields invited local players mainly with trading views, other group specific stocks added spice and the index managed to close at new high level, but struggled to test the intraday resistance level of 15,296-15,310 that index managed to reach on Tuesday.
Although the stance by the international rating agency of maintaining the negative outlook for Pakistan has further reduced chances of foreign inflow, amicable settlement of the sensitive issues can however allow the local liquidity to support the prevailing levels.
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