The stock market index raced to above 9200 level on Tuesday where renewed buying orders were witnessed in OGDC and PTCL while several scrips closed on the upper limit, appreciating the business by almost 200 million shares. The KSE-100 index registered an increase of 355.20 points, or 4.01 percent, to 9218.68 from 8863.48. The turnover amounted to 918 million shares against 767 million shares of Monday. The market capitalisation soared to Rs 2.525 trillion from Rs 2.445 trillion.
Ahmed Ashraf Sheikh from Akbarally Cassim said that a historic session was seen at Karachi Stock Exchange where the highest-ever single-session gain was heralded. The market breached the 9000 barrier with no signs of resistance. PSO closed at its upper circuit limit as rumours of interest of British Petroleum came through.
OGDC closed near upper limit as punters were expecting scrip price of Rs 175. PTCL breached the Rs 85 mark as privatisation price of $2 is being expected. "We expect further bull-run in these scrips as fundamentals are strong based on the privatisation front."
The badla increased by 750 million rupees. There was major badla decrease in PSO by 10 percent as weak holders offloaded their positions at limit-up levels. The badla levels increased due to record appreciation in the share market. Otherwise, the badla levels in terms of volumes remained flat. The badla rates continue to remain at limit up levels of 18 percent.
Tanvir Abid, head of research at Live Securities, said that the euphoria in PSO started on rumours that high profile global oil players might participate in the privatisation process. As a result, the scrip closed at its upper circuit level.
PTCL was another scrip which was in great demand and it gained 6.1 percent to close at the Rs 84.30 level. With the announcement date of PTCL's short listed parties for privatisation approaching, the scrip may even touch Rs 100 mark during the next couple of weeks.
Rise in OGDC can be attributed to enhanced energy output in the current fiscal year, coupled with speculation in the market that the government would soon call for EOIs for OGDC strategic sale.
The bullish run continued at a breakneck speed. Though some profit taking could been seen at the 9400 level. "The overall sentiment remains sanguine and we reiterate4 our positive recommendation on NBP, PSO, PTCL and Fauji Fertiliser Bin Qasim."
Hasnain Asghar from Aziz Fidahusein said that the nervousness pertaining to COT phasing out and ongoing changes in the settlement system invited an across-the-board offloading on opening. The rumours of high reference prices for PTCL and PSO invited the punters' speculative buying in the main stocks--PSO, PTCL, OGDC and POL--and pulled the market out of the change phobia and index went on to make another series of records.
Although the factors that can bring about a technical adjustment (breach of capital adequacy, non-availability of funds for badla, expensive forward counter and new rules for risk management) still persist the growing foreign interest in the privatisation of PTCL and PSO depicted rumours of high bids received continued to disallow any adjustment.
Technically, the index would continue to find intra-day support around 9090-9096 while overhead resistance stays at 9377-9383.
PTCL on business of 301 million shares registered an increase of Rs 4.80 to Rs 84.30; OGDC moved up to Rs 148.40 from Rs 138.50 on turnover of 204 million shares; DG Khan Cement lost Rs 1.55 to Rs 72.30 on trading of 65 million shares; National Bank of Pakistan moved up to Rs 148.75 from Rs 143.15 on volume of 59 million shares; and PSO gained Rs 33 to Rs 473 on deals of 50 million shares.