The Karachi share market experienced a volatile session on Friday and the KSE-100 index moved both ways to hit 7,220.60 points intra-day high and 7,124.22 points low before closing at 7,177.64 points with a gain of 35.22 points. Trading volume at ready counter increased to 121.315 million shares from 114.060 million shares traded a day earlier.
Market capitalisation increased by Rs 10 billion to Rs 2.137 trillion. Trading took place in 292 scrips, out of which 159 closed in positive and 110 in negative while the value of 23 scrips remained unchanged. Bank Al Falah was market leader with 11.629 million shares and gained Re. 0.53 to close at Rs 12.37.
BoP, NBP and MCB increased by Re. 0.78, Rs 1.47 and Rs 7.09 to close at Rs 13.39, Rs 73.98 and Rs 172.76 with 6.560 million shares, 5.377 million shares and 5.323 million shares respectively. D G Khan Cement gained Re. 0.22 to close at Rs 23.78 with 11.392 million shares. Jahangir Siddiqui Co lost Re. 0.51 to close at Rs 26.03 with 8.477 million shares. Bosicor Pakistan declined by Re. 0.17 to close at Rs 8.09 with 7.774 million shares.
POL surged by Rs 6.42 to close at Rs 153.94 with 4.633 million shares. OGDC lost Re 0.38 to close at Rs 73.60 with 3.790 million shares. Fauji Fertiliser gained Rs 2.24 to close at Rs 99.54 with 4.028 million shares.
Wyeth Pakistan and Siemens Pakistan were the highest gainers and gained Rs 50.00 and Rs 45.50 to close at Rs 1350.00 and Rs 994.00 respectively while Attock Petroleum and GlaxoSmithKline were the worst losers and lost Rs 6.72 and Rs 6.53 to close at Rs 294.32 and Rs 127.00 respectively.
Hasnain Asghar Ali at Aziz Fidahusein Co said that the positive impact of likely reduction in fuel prices on the economic indicators and its trickling down impact on various other fronts such as a little spur in economic activity, reduction in inflation and that in turn will allow the SBP a further reduction in discount rate gave confidence to the local investors to place bets in the main board stocks.
Confidence expressed by SingTel on the mobile density in the Pakistan markets and their plans to increase exposure in other markets, invited buying interest in the target company likely to benefit in shape of portfolio gains from buying interest if executed by SingTel.
Last trading session of the week and extreme movement and chances of price erosion mainly due to absence of leverage player, however, kept the conservative stance alive. The main board stocks invited accumulation in dips thereby allowing the bench mark a snail pace recovery, thus negating various arguments of an extended bear market.
Lacklustre at the local equity market kept the corporate sector on back foot and rightly so. Impact of low turnover supported the strategy of conservative accumulation. Endorsement by market pundits that ready board leverage was essential for development of local bourses in terms of price discovery and turnover and cash settled future carries high chances of manipulation.
Besides, the view that the product is a hedging tool and not a leverage product increased the intensity of the unconfirmed development regarding introduction of new product having larger market acceptability to address the issues. This re-invited the high net worth participants to shopping spree and the benchmark started travelling north. Major development after the likely reduction in fuel prices, international support for the actions undertaken locally, attractive valuations may tempt fresh funds, on regular intervals.