Karachi share market on Wednesday continued its upward trend with making new records as the KSE-100 index crossed 14,600 historic level to hit 14,614.34 points intra-day high level on the back of increasing oil prices in the international market.
Finally, the KSE-100 index closed at its highest ever level of 14,590.17 points with a net gain of 126.39 points. While the KSE-30 index gained 87.84 points and also closed at its new record level of 17,863.78 points.
The market started on a positive note, but a major decline in Indian market affected the momentum, while selling in the banking sector stocks, forced the index to enter the negative zone to reach 14,255.37 points intra-day low level.
Later, the market witnessed buying mainly in oil sector stocks due to increasing oil prices in the international market and the index once again entered the positive zone. The index hit its historic 14,614.34 points intra-day highest ever level, but the selling in banking sector stocks pushed the index to close slightly lower at its closing level.
The market witnessed healthy trading activity as the ready market volume increased to 438.542 million shares as compared to 302.696 million shares traded on Thursday. The futures market turnover surged to 95.453 million shares against 54.297 million shares previously.
The overall market capitalisation increased by Rs 28 billion to settle at its record level of Rs 4.455 trillion. Trading took place in 379 scrips, out of which 207 scrips closed in positive and 128 in negative, while the value of 44 scrips remained unchanged.
The E&P giant, Oil and Gas Development Company (OGDC) was the star performer of the day with 66.430 million shares and the scrip surged by rupees three to close at Rs 132.80 followed by TRG Pakistan, which increased by Rs 0.50 to close at Rs 15.80 with a total volume of 46.864 million shares.
Fauji Fertiliser Bin Qasim also remained active and gained Rs 0.70 to close at Rs 47.55 with a total turnover of 35.637 million shares. Fresh buying was seen in Arif Habib Sec and the scrip surged by Rs 3.95 to close at Rs 165.25.
In the banking sector, Bank of Punjab (BoP) and NIB Bank gained Rs 0.35 and Rs 0.60 to close at Rs 105.15 and Rs 22.50 respectively, while National Bank of Pakistan (NBP) declined by Rs 4.70 to close at Rs 266.55.
Buying was witnessed in cement sector stocks as DG Khan Cement and Zeal Pak Cement gained Rs 2.75 and Rs 0.65 to close at Rs 114.25 and Rs 5.45 respectively, while Lucky Cement closed at the same level of Rs 137 without any change.
Unilever and Siemens were the highest gainers, with Rs 90 and Rs 29 gains to close at Rs 2,590 and Rs 1,786 respectively, while Pak Reinsurance and Pak Engineering were the highest losers. They lost Rs 13.70 and Rs 12.25 to close at Rs 381.05 and Rs 232.75 respectively.
Ahsan Mehanti at Shehzad Chamdia Securities said that major decline in Indian market affected the momentum at the local share market in initial hours, forcing the index to enter the negative zone, but rising oil prices in the international market supported the index to recover its intra-day losses and to close at its new record level of 14,590.17 points.
Major buying was witnessed in oil sector stocks and most of the relevant stocks closed in positive with gains. Selling was witnessed in some banking sector stocks, which closed in negative. Buying was witnessed in MCB Bank and BoP, which closed in positive.
The investors took positive the recent developments on the political front and took fresh positions on the back of their good expectations. Increasing special convertible rupee accounts (SCRAs) balances and good volume indicate the investors'' interest to invest at the share market.
Hasnain Asghar Ali at Aziz Fidahusein Securities said that the impact of changes in treatment of non-performing loans (NPL) by the State Bank of Pakistan (SBP) was certainly exaggerated, nevertheless the suspense linked to the Supreme Court''s decision regarding presidential elections added to the banking sector and the positive opening invited fresh inflow mainly in the banking stocks.
Index did witness an extended onslaught and the index made an intra-day low of 14,253.29, down by 210 points. Surge in oil prices in the international market and temptation linked to futuristic growth invited accumulation in almost all sectors, leading the way were certainly oil and gas exploration stocks.
Aggressive buying accompanied by short covering in low priced banking, fertiliser and cement sectors certainly allowed the index to continue the record-breaking spree both on intra-day and closing basis. Technically, the index still faces major resistance around 14,800-14,810, while intra-day resistance stayed at 14,670-14,677 and intra-day support stayed at 14,327-14,333.