The local share market continued its upward journey with making new records, as the KSE-100 index reached its new highs to close at its highest ever level of 14,202.23 points with net gain of 70.95 points on Friday on the back of strong fundamentals, easing law and order situation in Islamabad, political stability and fresh foreign investment in the local equity market.
On the other hand, the KSE-30 index surged by 31.97 points to close at 17,162.45 points level. Although the start of the market was negative, but bulls gradually strengthened their position on the back of fresh buying mainly in fertiliser and oil sectors. At one time, the KSE-100 index hit 14,288.24 points intra-day high level, which was its highest ever intra-day level.
However, the upward momentum stopped due to rumours regarding inquiry by the Security and Exchange Commission of Pakistan (SECP) on scrips, which gained more than 100 points in a short period of time.
The rumour created uncertainty among the investors, who opted for offloading their holdings on available margins. The market witnessed healthy trading activity as the ready market volume increased to 524.609 million shares as compared to 463.602 million shares traded a day earlier. The futures market turnover also increased to 88.105 million shares against 58.794 million shares previously.
The overall market capitalisation surged by Rs 21 billion to reach its record level of Rs 4.203 trillion. Trading took place in 388 scrips, out of which 194 scrips closed in negative zone and 162 scrips in positive zone, while the value of 32 scrips remained unchanged.
The E&P giant OGDC was the star performer of the day with 54.017 million shares and the scrip surged by Rs 3.50 to close at Rs 124.35 followed by WorldCall Telecom, which gained Rs 0.95 to close at Rs 20.30 with a total volume of 33.419 million shares.
Bosicor Pakistan increased by Rs 0.40 to close at Rs 21.70. TRG Pakistan closed at Rs 16.65, up by Rs 0.05. Dewan Salman gained rupee one to close at Rs 12.25, SSGC surged by Rs 0.90 to close at Rs 30.80, Fauji Fertiliser Bin Qasim increased by Rs 2.15 to close at Rs 45.20, JS Bank 0.65 to close at Rs 23.50, while PIA gained Rs 0.75 to close at Rs 9.80. However, Arif Habib Sec lost Rs 7.85 to close at Rs 149.80.
National Refinery and Engro Chemical were the highest gainers, which gained Rs 19.75 and Rs 12.55 to close at Rs 415.60 and Rs 263.55 respectively, while Jahangir Siddiqui Co and Siemens were the highest losers, losing Rs 36.10 and Rs 35 to close at Rs 686.80 and Rs 1,630 respectively.
Ahmed Nabile, COO of Javed Omer Vohra & Co, said that the share market was performing well with the strong fundamentals, great foreign interest and easing law and order situation in the country. The Lal Masjid issued has been resolved and now the investors are seeing political stability in the country.
The foreign interest is being witnessed continuously at the local equity market mainly in banking sector. The foreign investors believed that the Pakistan's equity market was still at attractive levels and had much potential to grow more in future. Besides this, indirect investment was also seen in oil and other sectors. He was expecting more inflow of foreign investments in the country's equity market in near future mainly from the US.
Ahsan Mehanti at Shehzad Chamdia Securities said that fertiliser sector performed well and most of the relative stocks closed at their upper circuits. E&P sector also remained active as OGDC and PPL closed with good gains. The news that OGDC was given license for exploration in many other areas invited fresh buying in the stock. Textile sector also invited fresh buying on the back of good expectations of investors regarding textile policy to be announced on July 17.
Kamran Naqvi, head of Equity Trade at Atlas Capital Markets, said that the President's speech led to a positive impact on investors' confidence as they foresee stability and an improved security situation in future.
A positive trend with good volumes was witnessed in oil and fertiliser sectors. Banking and cement sectors remained under pressure throughout the trading session. Price appreciation of was the primary trigger in fertiliser sector's good performance.
FFBL being the biggest beneficiary of price increase achieved its price limit with Engro also closing at its maximum price of the day. Rising oil prices boosted hopes of the investors as a significant price appreciation was witnessed in E&P scrips, particularly OGDC after a long time. Though rumours regarding inquiry by the SECP on scrips, which had gained more than 100 percent in a short period of time, stopped their upward movement, the overall market remained bullish.