KARACHI – The KSE-100 index gained 97 points to close at 11,809 levels. Volumes dwindled and stood at 52 million shares, triggered by the Prime Minister’s announcement of a half-day holiday – as the Karachi stock exchange cut down trading time by one-and-half hours.
Investor’s participation was considerably low, as they stayed in holiday mood. Few top tier stocks seemed to on the move irrespective of lower volumes. News related to lube prices impacted performance of the lube based NRL. Lucky cement dominated, ending the day as the volume leader.
OGRA may play a vital role in diagramming the price maturity probably by this week backed by news of urea import operation and rising petroleum prices. Sentiments of investors are on the rise, with performances of various companies and country’s law and order well managed by the security agencies. The first quarter of the Calendar Year 2011 and third quarter of the Financial Year 2011 is nearly finished, hence result season is likely to commence shortly.
The result season or expectations may determine direction of the market. The market bounced back from lower levels but still lacked volumes, clearly showing a lack of investors’ confidence. Restrained by local corporate participants from joining offshore trend in off-loading high priced stocks, closing has been a support for the bulls, while prolonged stagnation and failure of the high priced stocks to invite follow-up support will keep the mentioned stocks under threat of low volume price erosion.
Any decision on cement exports might be available soon, as high powered delegation includes chairman of the largest cement manufacturer to India and Pakistan’s victory may invite short term excitement led positive run-up. That is likely to be countered by severe off-loading in index heavy weights that may push the index for a short term technical adjustment, while defeat may allow a consistent bull-run, Hasnain Asghar Ali at Aziz Fidahusein anticipated.
Volume plummets as investors stay in holiday mood
