The weekend consideration and opposition's strike call forced some of the players to adopt cautious approach and the market witnessed selective buying in banking, oil, gas, cement and textile scrips throughout the session on Friday.
The KSE-100 index gained a meagre 5.04 points, or 0.06 percent, to 7889.25 from 7884.21. The volume amounted to 298 million shares as against 366 million shares of Thursday. Market capitalisation ended at Rs 2.249 trillion from Rs 2.245 trillion.
The investors' interest was mostly concentrated in oil, gas and cement sectors on expectations of good corporate results from companies such as OGDC, Pakistan Oilfields, D G Khan Cement and Pioneer Cement.
The index made an intra-day high of 7933 points but failed to sustain the rally as selling pressure clipped the gains and the index moved to below Thursday's closing. But activity in some investment stocks and blue chips helped the index to close on a positive note.
Analysts were expecting D G Khan and Pakistan Oilfields to report healthy earnings for year ended on June 30, 2005. This triggered renewed buying in these stocks, helping both companies to close higher.
Some punters were anxiously waiting for KSE management's decision about the appointment of new managing director. The market men were eagerly waiting about the managing director's ruling over the regulations prepared by last director, as to whether he would carry forward the program or some new measures would be announced pertaining to ready and futures markets.
Khaliq Kiyani has been tipped as the new managing director, having vast experience in banking and other regulatory framework.
Hasnain Asghar from Aziz Fidahusein said that speculative activity in stocks headed as 'Mansha' group stocks--D G Khan Cement, Nishat Mills, Adamjee Insurance and MCB--were joined by stocks headed as 'Dawood group' stocks--Sui Northern Gas and Engro--thereby allowing the market participants more trading options.
Pre-trade verification invited offloading in index heavyweights. Short covering in the petroleum giant, however, invited volume in the stock, thereby indicating a most likely bull-run expected in privatisation stocks.
Technically, however, the index would continue to face resistance around 7903-7910, while support stays at 7825-7833. Expected announcement of POL next week would keep the market volatile. Dips should, however, be capitalised in main stocks, while stop-loss option should be exercised in the stocks trading only because of their speculative tendency and not having a history of healthy payouts.
PTCL lost 75 paisa to Rs 65.40 on a volume of 38 million shares. MCB rose by Rs 1.35 to Rs 116.75 on trading of 33 million shares. NBP climbed to Rs 126.20 from Rs 125.05 on turnover of 30 million shares. OGDC shed 75 paisa to Rs 110.75 on trading of 30 million shares, and D G Khan Cement moved up to Rs 66.40 from Rs 65.05 on deals of 27 million shares.