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The revived investors' confidence over the expectations of early introduction of leverage product on Thursday invited renewed buying at the local bourse and supported the KSE-100 index to register a healthy gain of 116.67 points to close at 12,359.06 points.
The market witnessed bullish trend from opening the session, as both local and foreign investors remained active throughout the session and took fresh positions. Due to active participation of both local and foreign investors, trading activities also improved, as the volumes at ready counter increased to 123.393 million shares, as compared to 78.396 million shares traded on Wednesday. The overall market capitalisation increased by Rs 32 billion to Rs 3.340 trillion. Out of the total 391 active scrips, 231 closed in positive and 136 in negative, while the value of 24 scrips remained unchanged.
Lotte Pakistan PTA was the volume leader with 36.984 million shares and gained Re 0.72 to close at Rs 15.98. Azgard Nine inched up by Re 0.52 to close at Rs 11.27 with 7.445 million shares. Fauji Fertiliser Bin Qasim increased by Rs 1.14 to close at Rs 41.37 with 6.258 million shares. Jahangir Siddiqui Co gained Re 0.86 to close at Rs 11.52 with 5.068 million shares.
Sui Southern Gas Company surged by Rs 1.01 to close at Rs 23.90 with 4.274 million shares. Nishat (Chunian) gained Re 0.83 to close at Rs 24.57 with 4.154 million shares. TRG Pakistan inched up by Re 0.33 to close at Rs 3.34 with 3.811 million shares. BoP lost Re 0.07 to close at Rs 8.13 with 3.792 million shares. Arif Habib Corp increased by Rs 1.20 to close at Rs 25.70 with 3.470 million shares. Attock Refinery gained Re 0.46 to close at Rs 121.51 with 3.468 million shares.
Shell Pakistan and Shezan International were the highest gainers increasing by Rs 10.21 and Rs 8.76 to close at Rs 214.56 and Rs 193.89, respectively, while Nestle Pakistan and Rafhan Maize were the worst losers declining by Rs 51.09 and Rs 28.58 to close at Rs 3405.00 and Rs 2349.42, respectively.
Hasnain Asghar Ali at Aziz Fidahusein Co said that rumours of introduction of ready board leverage product that firmed up before market open, allowed the benchmark a positive opening. The numbers duly increase on back of technical recovery, where-in stocks trading with dividends and yielding in double digits, mainly in the sectors having least impact of the economic uncertainties along with some mid-tier stocks, invited wide spread buying, while high priced stocks exposed to likely sell-off barely managed to sustain marginal gains attained during early trade, turnover was poured in by substantial activity in LOTPTA, by the local participants.
"Although badla rumour has been a regular sedative in restricting the market from loosing ground in the environment wherein macro situation might not allow the benchmark to sustain the levels", he said adding that the government's efforts of reducing expenditure and curtailing inflation if implemented with latter and spirit, might however, reduce burden on sensitive indicators, coupled with economic betterment, the impact of leverage is likely to allow positively backed with turnover, since various valuations are likely to improve after introduction of much awaited leverage despite being on stringent side, the sellers took a breather.

Copyright Business Recorder, 2011

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