Recovery in the US equity market, coupled with easing law and order situation, provided the benchmark with enough energy for short covering and allowed the index to stage a technical recovery. Frontline dividend yielding stocks led the show, while various high priced stocks witnessed speculative activity and support by respective groups. Absence of follow-up support disallowed participants from making fresh bets, midday stagnation invited profit taking by the local corporate participants.
The KSE 100 index closed at 10,941.08 levels with the gain of 98.82 points, while KSE 30 index gained 99.96 points to close at 10,494.75 levels. All Share index closed at 7,611.58 levels after gaining 62.06 points. Total 118 scrips advanced 93 declined and 103 remained unchanged out of total 314 scrips traded.
Targeted and syndicated effort through low volume strength in OGDC (that contributed up to 50 per cent of the total gains by offering support up to 0.75 per cent volumetric and 1.7 percent in value terms) disallowed the benchmark from reflecting the wider decline. However, efforts to close the benchmark at 11,000 failed due to low volume price erosion in the closing hour, mainly on dumping through offshore channel.
Hasnain Asghar Ali at Aziz Fidahusein said strength is likely to invite off-loading by the local participants ahead of extended weekend and Eid holidays next week, mainly due to volatile law and order situation. While amid various economic, financial and energy issues (apart ftom cut in US aid and tough conditions placed by IMF) short term horizon is unlikely to allow free hand to the bulls, thus making the recent run-up mere technical recovery, he added.
