Trimming in share values allowed several punters and players to execute fresh deals in choice scrips, helping the index to rebound sharply. The KSE-100 Index closed at 9,656 levels up 152 points from the previous closing of 9,504. Volumes in the ready market were 130 million shares compared to 127 million shares recorded yesterday.
However volumes in the future market were 64 million shares against 65 million shares recorded in previous trading session. The index opened on a negative note recovering soon after to touch its high at 9681. This was followed by another brief recessionary period whereby the market fell by almost 100 points from its peak making an intra-day low of 9438.
Buying prevailed in the market predominantly due to an oversold situation. Major activity took place in the banking, E&P and cement scrips. NBP, BOP and FABL reacted belatedly on NIT''s dividend pay out and surged by Rs 7.75, Rs 2.15 and Rs 1.2 respectively. E&P sector also recovered where OGDC took the lead and contributed 25 points towards the market''s climb.
Ahsan Mehanti, chief executive officer at Shahzad Chamdia Securities said that tremendous decline in share values prompted some fresh buying from financial institutions and leading investors.
Upcoming results hold promise of a handsome rally, confusion related to National Standing Committee outcome that if done away hurriedly would boost the sentiment. The values are attractive and PE is also cheaper, the market men needs comfortable environment to play long.
Hasnain Asghar from Aziz Fidahusein said that the value temptation allowed the index to find support after weak and low volume opening. Although turnover stayed low through out the session presence of support in main stocks invited an across the board buying interest towards the end.
Technically index will continue to find support around 9550-9557 while over head resistance stays at 9770-9777, rumours regarding the ongoing inquiry of March 05 crisis can however disallow the market to stabilise, it is therefore recommended to focus on main stocks likely to come up with healthy pay outs for both trading and placements.
Reduction of number of participants have led to a decrease in turnover, with institutions following the sentiment index is not likely to register an adventurous move, profit taking with a view to reduce cost is therefore not a bad option, while trading positions should not be kept for more that three sessions as the built in nervousness is likely to stay for a while.
Rabia Hussain from JS said that throughout the day market remained range bound with low volumes but activity was seen near the end of the trading session when bargain hunters entered the market and availed the opportunity. Market made an intra day high of 177 points. Mainly buying was seen in DGKC, Lucky Cement, MCB and National Bank. Major gainers were MCB closing at Rs 217.50 up Rs 9.90 and NBP closing at 223.00 up Rs 7.75. Today out of 317 stocks traded 159 closed on positive note.