The share market on Friday because of weekend considerations moved in a narrow band as profit selling in banks, gas and oil scrips forced the seasoned investors to sell their holdings. The KSE index rose 14.48 points, or 0.2 percent, to 7464.60 as compared with 7450.12. The volume fell to 158 million shares as against 230 million shares of Thursday.
The market recorded handsome gains in the first session following government decision to raise oil and gas prices by as much as 9.2 percent and 12.5 percent, respectively. Buying activity in this sector helped the market to breach the 7500 level, but selling from retail as well as institutions led to a widespread erosion and the index at one time sailed into the minus territory. Before the closing of the market a number of companies received fresh buying orders, helping the index to finish in the positive zone.
Strong rumour once again engulfed the market that several members had approached the Securities and Exchange Commission of Pakistan (SECP) and some officials at the Ministry of Finance to extend badla trading till such time as the margin financing mechanism streamlines.
Hasnain Asghar from Aziz Fidahusein said that the index, however, succeeded in maintaining its positive stance on the strong rumour that the government had formed a committee for revival of turnover and activity in the local bourses which was likely to present its proposal late in the evening. The main proposal, talked about, would be a parallel COT market with margin financing. This invited speculative activity and forced sellers to improve their selling limits disallowing any major resistance to the bullish forces.
The development, however, failed to resist the selling pressure. The last-day phobia finally invited across-the-board offloading as the expectation of public announcement of Task's force report on March crisis forced the market participants to reduce their load thereby leading to an adjusted closing.
Technically, the index continues to face major resistance around 7527-7533 while support stays at 7377-7383. It is, however, recommended to opt for selling on strength while any change in stance of COT phasing out can change the entire scenario. Status quo on COT phasing out can, however, wipe off 200 to 250 points.
PTCL lost 5 paisa to Rs 65.90 on a volume of 42 million shares. NBP moved up to Rs 109.35 from Rs 107.95 on turnover of 36 million shares. OGDC gained 75 paisa to Rs 106.05 on trading of 25 million shares. Bank of Punjab closed at Rs 82.95, ie lower by 80 paisa on around 8 million shares, and PSO fell to Rs 384.75 from Rs 386 on transactions of 7 million shares.