Despite selling of index mover Oil & Gas Development Company, across the board buying particularly in insurance sector helped the Karachi bourse successfully cross the immediate resistance level of 9,900 points on Friday.
The KSE 100-share Index slightly moved up by 13.32 points or 0.13 per cent and closed at 9,902.62 points. Its junior partner the 30-Index increased by 31.43 points or 0.31 per cent and concluded at 10,295.24 points.
Despite of the fact that the international oil prices further rose to $78 a barrel reportedly, the oil giant Oil & Gas Development Company fell in red, alone losing over 25 points on the key benchmark 100-Index. Two other exploration fellows, the Pak Petroleum and Pak Oilfields along with giant oil marketing company the Pakistan State Oil also declined into the red region. The telecom sector was also subject to profit booking and settled in negative column.
On the contrary, the banking and insurance sectors performed in green territory ahead of their expected good financial results.
Ahsan Mehanti at Shahzad Chamdia Securities said that positive activity witnessed on strong result announcement expectations in banks and insurance sector scrips ahead.
Investors remained bullish on continuing foreign investment in Pakistan capital market. While further increase in international oil prices to $78 a barrel, indications for last tranche release of funds under Kerry Lugar bill of US and expectation of early introduction of financing (leverage) product played a catalyst role in positive activity at KSE.
Furqan Punjani at Topline Securities said that weekend affect along with selling pressure in regional markets induced investors to close their position, allowing index to post a meager surge. Market during the session tried to test 10,000 points but failed to do so. Banks and insurance remained in limelight because of coming corporate results along with continued activity in tier two stocks.
The day turnover again surged to 171.97 million shares from 140.54 million shares changed hands yesterday. Turnover in futures market fell to 3.63 million shares as compared to 5.37 million shares yesterday. Market capitalisation was up five billion rupees at Rs2,847 billion.
Hasnain Asghar Ali at Aziz Fidahusiens said that excitement linked to stock dividend, public offer ahead of mergers and sale of strategic holdings kept the banking sector stocks moving up.
Insurance giant entered the band wagon with a bang after a prolonged silence, as the stocks are yet to announce their annual results. While short covering triggered due to cautious accumulation by corporate participants in the other stocks of the group allowed various trading opportunities to day traders, he added. Out of total 397 active stocks, 203 stocks advanced, 175 stocks declined, while the value of remaining 19 stocks closed unchanged.
Highest volumes were witnessed in AH Securities at 19.54 million closing at Rs51.17 with a gain of Rs1.60, followed by Mybank at 14.96 million closing at Rs5.79 with a gain of 19 paisa, National Bank at 7.94 million closing at Rs83.75 with a gain of Rs1.54, JS Company at 7.67 million closing at Rs28.25 with a gain of 10 paisa, and Bank of Punjab at 7.66 million closing at Rs20.13 with a gain of four paisa.
End.
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