Sole local PTA manufacturer LOTPTA was the index darling, as it single handedly accounted for 31mn shares out of the total 117mn traded on Wednesday. News of improving primary margins in the international market was the impetus for the sudden interest surge in the scrip as it closed 5.8 per cent above its previous close. KSE 100 index closed at 12059.07 levels with the gain of 4.25 points, while KSE 30 index bagged 39.47 points to close at 11584.55 levels. All Share index closed at 8353.71 levels after gaining 4.90 points. Total 120 scrips advanced 150 declined and 99 remain unchanged out of total 369 scrips traded.
Morning news of FFC and FATIMA following Engro’s price hike kept fertiliser stocks in the lime light with both scrips accounting for 10mn shares. Overall, the market momentum was sporadic as the index crossed the 12,100 mark at one point before finally settling at 12,059 points. With the quarterly results season just around the corner, market activity is expected to remain buoyant as investors continue their bargain hunting. Absence of follow-up support and prolonged stagnation, declining turnover with increase in values, that has become a regular happening, kept the local bourse in an extremely narrow range. Off-loading in various mid-tier stocks mainly by the short term players, and that in various expensive stocks by the corporate participants checked the intra-day upside movements besides, while mismatch in the statements by commerce minister and secretary regarding agreements reached with India certainly stayed a cause of concern for the market men.
Placement of proceeds in dividend yielding stocks, mainly the Fauji group stocks from fertiliser sector besides creating sensation did offer support on adjustment, while Lotpta besides pouring in substantial turnover that contributed more then 30 per cent to the total turnover, sustained the air pocket opening since the stock has lagged price appreciation.
Hasnain Asghar Ali at Aziz Fidahusein said, consistent sell-off by the offshore participants, fragile economic and financial situation and heated political environment, along with curtailed local strength will continue to disallow aggressive activity mainly in the high priced stocks. Dips in dividend yielding stocks will however tempt equity funds for placements, resolution of circular debt and any relaxation in CGT may offer the desired spur to the economy and capital markets respectively, caution however stays the call, he added.
