KSE index gains 11.93 points

24 Nov, 2004

Short covering heralded in heavyweights on Tuesday which helped the index to recover some of its losses at the Karachi Stock Exchange (KSE) where volume was slightly lower because of selling from some of the institutions. The KSE-100 index gained 11.93 points, or 0.22 percent, to 5514.49 as compared with 5502.56 of Monday. Business amounted to 228 million shares as compared with 248 million shares.
The market capitalisation rose to Rs 1.533 trillion from Rs 1.529 trillion. Tariq Hussain Khan, manager research at Live Securities, said that the market witnessed another range-bound session before touching the wall of 5500. The index movers, PTCL and OGDC, contributed to Tuesday's intra-day gains. "We expect the market may continue to face hurdles in its journey towards high, as it was a second time in a week when the market failed to touch 5550 level," he said.
There are low chances of any bearish spell and even expected rise in Wednesday's treasury bills auction is not likely to affect the market. However, failure to breach 5550 on closing basis may create uncertainty among the small investors, he said.
Umair Dawood from Akbarally Cassim said that the market seemed to be consolidating at the 5500 index level. If this phase continues it is expected that index can reach 5600 levels. PTCL was the most active scrip of the day as punters accumulated the scrip on hopes of privatisation premium. Fauji Fertilizer Bin Qasim was another scrip in which investors were very optimistic that its price would take a hike as the merger swap ratios are announced.
The market was surrounded by rumours that Askari Commercial share price would reach 100 rupees mark and it seemed quite likely as the company has increased its paid up capital by 1.5 billion rupees by year-end.
The overall badla decreased by 50 million rupees. Badla in Fauji increased by 4 percent and in NBP it went up by 1.5 percent. "We advise caution in these two scrips." On the other hand, badla in OGDC and Pakistan Oilfields decreased by 2.66 percent and 1.77 percent, respectively. The weighted average rate in the market was around 11.3 percent and this indicates that badla is still being done on a slight higher side.
Hasnain Asghar from Aziz Fidahusein said that the major discovery reported by OGDC and improvement in country's credit rating supported mild reduction in carryover transactions.
Gains in PTCL and OGDC allowed the index to make an intra-day high of 5538, rising by 36 points. The intensity reduced when float from carryover holdings made its way to the main stream. Buying in December futures and institutional buying on dips allowed the index a consolidated closing.
Technically, the positive advance/decline ratio and healthy turnover continues to place the resistance at 5550-5557 while support would come around 5496-5503. It is therefore recommended to take advantage of low volume dips, while easing up of COT would force a buy recommendation in the growth stocks for trading.
PTCL denoted an increase of 35 paisa to Rs 40.80 on a volume of 41.496 million shares; Fauji Fertilizer Bin Qasim closed at Rs 23.30, higher by 35 paisa, on a turnover of 35.513 million shares; OGDC showed an increase of 35 paisa to Rs 66.20 on trading of 14.843 million shares; Nishat Mills moved up to Rs 54.70 from Rs 54.25 on deals of 12.785 million shares; and Bank of Punjab gained 25 paisa to Rs 60.75 on transactions of 12.617 million shares.

Read Comments