The share market was slowly returning to normalcy but still some seasoned investors stayed away from the rings as they feared that the market might take some more hiccups before consolidating. The KSE-100 index recorded an increase of 230.42 points, or 2.9 percent, to 8085.56 from 7855.14 of Tuesday. The volume rose to 447 million shares as against 312 million shares. The KSE 100 index recovered sharply after the shares of OGDC were bought by a consortium of banks and financial institutions at Rs 117.50.
The index at one point saw a high of 8345 but finally settled down at the level of 8084 crossing the 8000 points psychological barrier. The Index gained a total of 229 points for the first time in past nine days. However, many Scripps were on a sprint back to their fair values, signalling future stability in the prices of these Scripps which included Scripps from the fertiliser, textile and oil sectors.
Fauji Fertiliser and Fauji Bin Qasim both closed on their upper limits at Rs 148.25 and Rs 31.35, respectively. In the textile sector Nishat Mills made a recovery of Rs 6.25, closing at Rs 90.40. Dewan Salman closed at its upper circuit for the second day in a row, closing at Rs 25.80. OMCs like Shell and PSO closed at their upper locks since they would be the ones to gain as it is expected that OCAC would raise domestic POL prices in Thursday's meeting.
"With volumes on the rise we expect the market to consolidate in the coming sessions."
After Tuesday's announcement of buying in OGDC at Rs 117.50, bullish sentiment continued, with the market opening on a strongly positive note. Most of the Scripps opened in the positive column and many of the volume leaders hit their upper circuit breakers. OGDC opened in the negative but moved into the positive column rising sharply and making day's high at Rs 130.40, up Rs 6.85.
The heavyweights took the index up with it and it made its day high at 8345, up 490 points. Selling, seen at the end of the day, resulted in OGDC once again moving into the negative and many of the Scripps falling below their upper circuits. FFBL, FFC, Hub Power, PSO, amongst others, closed the day at their upper circuit breakers. Trading volumes increased 43 percent to close the day at 447 million shares.
Ahmed Ashraf Sheikh from Akbarally Cassim said that the badla decreased by 600 million rupees. There was major badla reduction in OGDC by 12 percent as weak holders finally saw the lower locks opening thus providing an opportunity to sell. There was badla increase in PTCL and Fauji Fertiliser Bin Qasim by 8 percent and 10 percent respectively as activity in the ready market attracted the weak holders to take positions.
OGDC was the volume leader of the day where selling pressure was seen towards the end of the day. Investors have been advised to stay cautious due to this volatility. "However, we expect bullish trend to continue in the market as weak holders are wiped out."
OGDC moved down to Rs 117.40 from Rs 123.55 on a volume of 106 million shares; PTCL rose to Rs 73.90 from Rs 68.90 on trading of 77 million shares; Pak PTA Ltd denoted an increase of Rs 1.50 to Rs 14.40 on turnover of 38 million shares; and National Bank closed at Rs 122, ie higher by Rs 8.20, as around 17 million shares changed hands.