The KSE-100 index on Wednesday gained 90.73 points to close at 11,699.16 points on the back of fresh buying by both local and foreign investors. The market witnessed profit taking in early hours which forced the index into negative zone at 11,536.32 points intra-day low level, down 72.11 points.
However, the investors' reviving interest supported the index to recover its intra-day losses and to hit 11,715.27 points intra-day high level, up 108.84 points. Trading, however, shrank slightly and the volume at ready counter declined to 143.291 million shares as compared to 153.038 million shares traded on Tuesday.
Market capitalisation increased by Rs 16 billion to Rs 3.157 trillion. Of 370 active scrips, 137 closed in positive and 132 in negative, while the values of 1001 stocks remained unchanged. NIB Bank was the volume leader with 19.946 million shares. However, it lost Re 0.33 to close at Rs 2.27. JS Bank and NBP increased to Re 0.06 and Rs 3.57 to close at Rs 3.10 and Rs 75.16 with 10.566 million shares and 5.277 million shares respectively.
Lotte Pakistan PTA gained Re 0.14 to close at Rs 15.67 with 17.105 million shares. TRG Pakistan inched up by Re 0.66 to close at Rs 3.31 with 13.938 million shares. Fauji Fertiliser Bin Qasim lost Re 0.33 to close at Rs 41.00 with 6.098 million shares. JS Growth Fund declined by Re 0.10 to close at Rs 5.69 with 5.211 million shares.
Nishat (Chunian) gained Re 0.92 to close at Rs 25.39 with 4.962 million shares. POL surged by Rs 10.84 to close at Rs 317.13 with 4.501 million shares. Nishat Mills lost Re 0.42 to close at Rs 62.31 with 2.942 million shares. Bata Pak and POL were the highest gainers, increasing by Rs 23.34 and Rs 10.84 to close at Rs 574.99 and Rs 317.13 respectively, while Unilever Pak and Nestle Pakistan were the worst losers declining by Rs 160.16 and Rs 16.14 to close at Rs 4521.96 and Rs 3384.10 respectively.
Hasnain Asghar Ali at Aziz Fidahusein Co said that after initial setback, the equity market witnessed renewed consolidation. Initial hours, however, failed to set a direction. Cautious accumulation turned into a bold bullish spell wherein oil and gas exploration stocks led the show, duly followed by various stocks from the main board having speculative tendency thus allowing the benchmark yet another triple digit gain.
He said that offloading through offshore channel in previous session did keep the high priced stocks under pressure. Renewed selling in the high priced stocks thoroughly checked the positive numbers during early trades. Since the bulls were in for a breather after gaining more then 500 points in back to back sessions, the index made a short visit to the red zone. However, the stocks offering decent dividend yields and having low impact cost did invite renewed buying from local circuits. The low volume price erosion in high priced stocks, however, kept the accumulators on the back foot. Day-end spike in speculative stocks did allow various participants to improve buying limits. While volume was mainly contributed by low priced stocks, snap rally in POL carrying speculative vibes kept the punters, both from corporate and retail sectors, active in the later half of the session.
He said that the expectations regarding rollback of the recent hike in petroleum prices and launching of MTS was likely to provide trigger to the ailing bourse, failing to invite potential turnover and struggling to sustain the attained levels.
According to him, the launching of proposed products, including MTS and SLB, would indeed provide substantial depth to the bourse. This might allow the equity market to re-emerge on international radar, besides allowing privatisation program to attain desired results--generating healthy proceeds by further listing of government holdings in bourse through sale of shares and in international equity markets through GDR offerings.