The KSE-100 index continued its bullish trend on the back of continuous FII flows, despite a tense geo-political situation post the US assault on Pakistani soil. The KSE-100 index managed to close above the psychological level of 12000 points, while 60 million shares were traded. With international oil rates gaining grounds and a step forward in the government’s plan for resolving circular debt by issuing convertible/exchangeable bonds of OGDC, local equity markets reacted accordingly.
Negotiations between the IMF mission and the GoP officials may shape the market‘s direction in the days to come, before the announcement of the annual budget. FII’s were rumoured buyers in energy sector, while locals were active in fertiliser and third tier names. Energy sector came in for active buying after rumours of resumption in exploration activities at the Maramzai field, expected to boost earnings of listed E and P companies for the current fiscal year, as against previous expectation that production will resume during the first quarter of FY12. Leading the bull-run were indeed the oil sector stocks, along with frontline stocks from fertiliser sector, low volume that depict absence of follow-up forced the local equity market in the stagnation mode with 12000 on board volatility stayed extremely low.
The KSE-100 index closed at 12,012.02 levels marked by a gain of 79.34 points, while total volume and total value stood at 42,830,246 and 2,472,549,846 respectively. The KSE-30 index gained 54.37 points to close at 11663.71 levels, while the All Share index closed at 8369.89 after gaining 49.13 points. Out of total 358 scrips, 138 advanced 123 declined and 97 remain unchanged. Market men eye the top companies’ award, as it will be attended by top brokers and stock exchange management, offering an opportunity to extend proposals mainly on CGT implementation mode. To the higher authorities, ability of the high powered participants to convince authorities on the proposed measures may offer a trigger for the local bourse, while the anticipation ahead of the event may allow sustain positive momentum.
Hasnain Asghar Alia at Aziz Fidahusein said that volumetric activity in front liners may offer short term trading opportunities, while low volume price erosion may offer various opportunities of fresh placements in dividend yielding stocks. Caution, however, stays the call.
