Karachi share market on Friday started on a strong positive note and the benchmark KSE-100 index hit highest-ever intra-day level of 14,272.85 on the back of strong foreign interest coupled with local investors and institutional support.
But the market could not maintain its upward trend as the investors opted for profit taking and the index fell down to 14,026.52 points'' intra-day low level.
Finally, the KSE-100 index settled at almost the same level at 14,099.30 points, down by 0.64 points, while the KSE-30 index lost 1.83 points to close at 17,331.60 points'' level.
Trading activity slightly improved as the ready market volume increased to 290.047 million shares as compared to 287.583 million shares traded a day earlier. The futures market turnover surged to 67.605 million shares against 66.992 million shares previously.
The overall market capitalisation declined by rupees two billion to close at 4.318 trillion. Trading took place in 349 scrips, out of which 178 scrips closed in positive and 129 in negative, while the value of 42 scrips remained unchanged.
The banking sector led the rally as Askari Bank, Bank Al Falah, National Bank of Pakistan (NBP) and NIB Bank surged by Rs 3.05, Rs 2.80, rupees four and Rs 0.05 to close at Rs 100.25, Rs 59.15, Rs 274.90 and Rs 21.40 respectively. Arif Habib Sec gained Rs 4.90 to close at Rs 144.90.
The E&P sector witnessed heavy selling pressure as the Oil and Gas Development Company (OGDC), Pakistan Oilfields Limited (POL) and Pakistan Petroleum Limited (PPL) lost Rs 1.45, Rs 4.85 and Rs 3.25 to close at Rs 123.55, Rs 329.25 and Rs 277.25 respectively.
The fertiliser sector witnessed a mixed trend as Fauji Fertiliser Bin Qasim increased by Rs 0.10 to close at Rs 45.90, while Engro Chemical lost Rs 0.70 to close at Rs 296. WorldCall Telecom declined by Rs 0.60 to close at Rs 19.10. TRG Pakistan closed at Rs 14.35, down by Rs 0.25.
Pak Reinsurance and Colgate Palmolive were the highest gainers, with Rs 19.15 and Rs 18.95 gains to close at Rs 402.25 and Rs 455 respectively, while JS Global Capital and Nestle Pakistan were the highest losers. They lost Rs 18.75 and Rs 14 to close at Rs 366.25 and Rs 1,525 respectively.
Ahsan Mehanti at Shehzad Chamdia Securities said that positive progress on political front invited fresh buying at the share market and the KSE-100 index hit all time high intra-day high level.
However, rumours regarding delay in presidential elections created panic selling and investors opted to offload their holdings on available margins. Heavy selling pressure was witnessed in oil related stocks and most of the scrips closed in negative. Cement sector also witnessed selling pressure due to declining profitability of the sector during 2007 financial year.
The banking sector performed well and most of the relevant stocks closed in positive on the back of news regarding the NBP GDRs. Kamran Naqvi at Atlas Capital Markets said that the market started 88 points positive on the back of news that Pakistan Peoples Party Chairperson Benazir Bhutto and President Pervez Musharraf had agreed on power sharing formula.
Banking sector generated most of the activity followed by fertiliser sector. At one point, the positive momentum took the market up by more than 170 points. Though the investors generally, believing that President Musharraf would be re-elected on Saturday, still preferred to book profits as Supreme Court''s decision was expected on Friday.
The selling pressure in oil and cement sectors pushed the market into negative zone, but good accumulation in banking sector supported the index to recover its intra-day losses and closed almost flat.