The local share market witnessed another bullish session on the back of fresh institutional and foreign buying and the benchmark KSE-100 index breached thorough the 12,500 psychological barrier to close at its highest ever level of 12,512.08 points with a net gain of 81.92 points on Friday.
The junior free float market capitalisation based KSE-30 index also closed at its all-time high level since its launch on September 1, 2006 at 15,656.39 points level, up 104.33 points.
The market opened on a strong positive note and remained bullish during both the sessions of the day and at one time the KSE-100 index hit 12,534.02 points intra-day high, the highest ever intra-day high level of the index.
The market saw heavy trading as the ready market volume significantly increased to 343.005 million shares as compared with 309.078 million shares and the futures market turnover surged to 54.939 million shares against 54.055 million shares traded a day earlier. The overall market capitalisation increased by Rs 28 billion to Rs 3.642 trillion. Trading took place in 349 scrips out of which 199 scrips closed in the positive column and 109 in the negative while the value of 41 scrips remained unchanged.
D. G. Khan Cement was the star performer of the day with 38.779 million shares and the scrip surged by Rs 2.55 to close at Rs 103.05 followed by OGDC which gained Rs 1.45 to close at Rs 124.30 with a total volume of 36.845 million shares.
The cement sector performed exceptionally due to record imports as Lucky Cement, Pakistan Cement and Fauji Cement surged by Rs 1.25, Rs 0.10 and Rs 0.35 to close at Rs 106.80, Rs 12.90 and Rs 20.05 respectively.
Nishat Mills also performed well and the scrip surged by Rs 3.80 to close at Rs 120.70. In the other top ten volume leaders, Askari Bank gained Rs 0.65 to close at Rs 94.45, POL surged by Rs 6.70 to close at Rs 357.20, WorldCall Telecom remained up by Rs 0.20 to close at Rs 14 however Fauji Fertiliser Bin Qasim lost Rs 0.15 to close at Rs 36.25.
Unilever and Rafhan Maize were the highest gainers which gained Rs 90 and Rs 78.05 to close at Rs 2200.00 and Rs 1652.00 respectively while Treet Corp and Arif Habib were the highest losers which lost Rs 7.50 and Rs 6.50 to close at Rs 211 and Rs 290.00 respectively.
Faisal Shaji an analyst at Capital One Equities said that although the Karachi share market one of the cheaper markets in the region however the investors should take cautious stance at the present levels. The market is up as compared with the FY07 and FY08 earnings valuation and a correction is expected.
He said the cement sector is performing well on the back of its record exports. The demand of Pakistani cement is increasing in Middle East and Afghanistan and cements exports could increase by 35 percent to 40 percent.
Ahsan Mehanti at Shehzad Chamdia Securities said that the KSE-100 index has reached its all-time high level on the back of fresh funds injection by foreign investors and institutional support. The SCRA balances have reached at its highest-ever level of $719 million and the cement sector's record export also aided to the flurry of fresh buying.
Hasnain Asghar Ali at Aziz Fidahusein Securities said that despite negative rumours circulating pertaining to standing committee's stance on the stock market March crisis hearing and likely delay of PSO's privatisation the bull run continued at the local bourses.
KSE-100 index after witnessing consolidation led by the cement and fertiliser stocks charged major resistance of 12,490-12,496, the rally stick was then handed over to the oil and gas exploration stocks, the rally then made possible an intra-day high of 12,533, up 101 points.
The concern expressed by the Prime Minister over the performance of textile sector and commitment expressed by him on subsidising the sector for better performance tempted fresh funds in the textile stocks leading from the front was NML.
The announcement of the likely date upcoming budget seems to have prepared the bulls for connecting the ongoing rally with the pre-budget rally. Timely decision of the regulator to address the issue of CFS amount enhancement of cap in accordance with the market demand will allow the index a smooth movement towards north.
Technically, ability of the index major resistance stays at 12,670-12,677 while the support has moved up to 12,325-12,333. The stocks trading at low multiples can be looked for trading and placement while commitments of cement exports by the regional importers can allow the rallying cement stocks further highs despite high multiples.