KARACHI: The day kicked off with PSO shares rising to Rs 298.34 because of the Rs 35 billion assured yesterday on account of the circular debt issue. The index floated around the 11,800 mark in the first half, with a few second tier scrips performing well along with PSO.
The second half brought news that fertiliser companies raised their urea prices by Rs 190, which made Engro and FFC cause a little bull run. The index closed at 11,858 points with 87 million shares traded, similar to the average for the week.
The KSE-100 index closed at 11,858.17 with the gain of 65.34 points while total volume stood at 63,669,442 along with the total value of Rs 3,834,339,931.
The oil exploration stocks were beneficiaries of rising trend in international oil prices and led the show. Low price stocks did contribute substantially to the overall turnover, while unconfirmed news of strategic buyout and portfolio dressing were major triggers, and there was increased activity on the part of short term traders.
Volumes have declined during the week as the year is about to end, marking the book closure period for institutions, resulting in some profit taking. The highest volumes were witnessed in LOTPTA, FATIMA and ANL, with PSO being the most volatile on the main board. Defensive player FFC enjoyed the limelight gaining a massive 4.3 percent after rumours of increasing urea prices hit the market.
FFC was also a major market mover, contributing 13.75 points or 21 percent to the index’s ascent. OGDC and PPL followed as market movers while UBL and MCB also marked their presence showing that the banking sector had its own contribution to make as attractive buys. Low volume price erosion that stayed prominent during early hours did invite value buyers, while high discounts in the initial trading hours in main board stocks was well capitalized by the corporate participants mainly in the stocks offering decent and consistent dividend yields and carrying growth prospects.
The realisation that the crossings in NDM are not likely to be sustained indicates that pressure might lead to adjustment in stock values.
