KSE breaches 5200 level

01 Oct, 2004

The KSE-100 index broke 5200 level as renewed buying surfaced at the share market with volume average over 300 million shares, indicating that inherent sentiment are quite strong. The KSE-100 index rose 21.37 points or 0.41 percent to 5217.65 as compared with 5196.28, while the volume fell to 370 million shares against 378 million shares.
A bullish trend did prevail, signs of profit-taking later on capped the upward movement. Both the PTCL and the OGDC continued to remain the pick of investors, however, the modest selling in the PTCL later caused the scrip to close in red.
The interest in PPL followed a similar trend as the scrip failed to maintain its exponential growth, said an analyst from Live Securities.
Punters and institutional investors sought accumulation in cement scrips, including DG Khan, Maple, and Lucky as the investors expect an announcement of construction of dams.
Humbal Haroon Katia from Akbarally Cassim, said that significant activity was visible in the PTCL, whose scrip dominated the proceedings as its result fever still persisted, adding the Gharibwal Cement closed at the upper limit as positive earnings of Rs 5.09 sparked interest in the scrip.
However, this earning comprises mostly of other income and extraordinary items, while Hubco and banking scrips closed on a strong note, he said.
Katia said the badla rose by 70 million rupees, adding there was a badla decrease in OGDC by 8 percent, and it is recommended to buy it on dip strategy, while the badla in PTCL declined by 5 percent as delivery-based buying was witnessed, but the badla levels are still high.
"We would reiterate that the technical measures look ripe for some sideways trading or profit-taking over the next day or two", said Aadil Ehtesham from Multiline Securities, adding the short-term measures are ripe for a brief spell of profit-taking.
However, downside appears limited because momentum measures have registered levels, which usually mean residual positive momentum is in place, he said.
An analyst from Elixir Securities, said for the first time in the last few days, the PTCL failed to sustain its highs, and this was to be expected since the COT volume in the stock has doubled.
Volatility has started to creep in PPL with the stock making wild swings between 121.25 rupees and 124 rupees, he said, adding the rising oil prices have also kept OGDC and PSO strong, but they all deserve a breather after its recent run. Oil stocks internationally, especially oil and exploratory companies have moved up.
Hasnain Asghar from Aziz Fidahusein, said that the banking stocks witnessed institutional buying while healthy corporate announcements by cement companies kept the punters interest alive.
Technically, the index will continue to find support around 5190-5196, while overhead resistance stays around 5243-5250.
The increase in the badla rate and the quantity might invite offloading in the first session on Friday, while buyers are likely to make their way in the second session.
PTCL remained unchanged at Rs 43.70 on a volume of 62.6 million shares, OGDC rose 35 paisa to Rs 63.05 on a turnover of 38.2 million shares, DG Khan Cement denoted a rise of 60 paisa to Rs 57.95 on a trading of 28.4 million shares, Fauji Fertiliser Bin Qasim gained 15 paisa to Rs 19.80 on a business of 25.8 million shares, and Fauji Cement closed at Rs 15.50, ie higher by 40 paisa as around 24.8 million shares changed hands.

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