The share market for the third consecutive session recorded gains due mainly to renewed activity witnessed in OGDC, NBP, PPL, and other investment stocks on the hope that the KSE-SECP meeting and privatisation euphoria would bear fruit. The KSE-100 index showed a gain of 161.93 points, or 2.36 percent, to 7019.60 as compared with 6857.67 of Tuesday. The volume amounted to 356 million shares as against 401 million shares.
The market for the third consecutive session showed appreciation as investors took long positions in choice scrips. The buying euphoria, which started from the opening of the week because of the KSE-SECP meeting continued, got strengthened following the government received highest bid for the National Refinery from the Attock Group. The NRL's sell-off would bring bonanza not only for mutual funds but also help improve the earnings of banks.
Tanvir Abid, head of research at Live Securities, said the NRL's successful privatisation further uplifted investors' sentiment raising hopes of similar response from upcoming transactions. Heavy weights, OGDC, PPL, NBP, and PSO led the rally. There was tremendous opposition regarding the KSE-SECP meeting being held to discuss the futures market rules. The index remained in the positive zone throughout the session and comfortably crossed the 7000 point. Bank of Punjab hits its upper circuit level for the third successive day on expectations of higher dividend receipts from NIT.
"We suggest a short-term profit-taking stance and advise partial offloading of positions as the Budget 2005-06 is just around the corner", Tanvir added.
Hasnain Asghar from Aziz Fidahusein, said the punters ignored the strike call and tense city as the local players focused on the index base stocks. The volume leaders - PTCL and OGDC - contributed to almost 71 percent of the total turnover thereby indicating a high intensity speculative activity.
The other participants were the banking stocks likely to benefit from the sale of NRL, as the biggest stakeholder in NRL was NIT, and the mutual fund is likely to pass on the gain to the unit-holders. While cement stocks failed to move with other stocks, although Lucky Cement managed to close at upper breaker.
The outcome of KSE-SECP meeting is still awaited, but the result would allow the market men to review the market potential. The recovery of 562 points in three sessions have failed to invite the sideliners, while institutions are likely to wait for budget and June closing for fresh injection of funds. Technically, the index would continue to face resistance around 7203-7210 while support would come around 6710-6717.
PTCL on a business of 149 million shares gained 60 paisa to Rs 67.50, OGDC on a volume of 99 million shares moved up to Rs 96.60 from Rs 92.65, NBP closed at Rs 94.14, ie higher by Rs 1.95 on a trading of 25 million shares, Pak Oilfields rose 20 paisa to Rs 258.70 on deals of 13 million shares and DG Khan Cement increased by 65 paisa to Rs 52.15 on a turnover of 8 million shares.