Targeted activity in OGDC contributed substantially to the benchmark that went on to hit the maximum limit for the day with a value contribution of 4 per cent to the overall traded value. The stocks made more than 60 per cent contribution to the gains, while hand shift in various stocks of the E&P sector allowed vibrations in the closing hour, along with group support in various mid-tier stocks that kept the local bourse out of coma.
The KSE 100 index closed at 11522.87 levels with the gain of 166.23 points, while KSE 30 index bagged 121.88 points to close at 11055.55 levels. All Share index closed at 7998.37 levels after gaining 108.47 points. Total 157 scrips advanced 87 declined and 81 remain unchanged out of total 325 scrips traded.
Decline in inflation numbers (which is unlikely to be sustained since food inflation is under threat) did inspire speculative activity, along with leaks suggesting a lenient view on CGT implementation mechanism committed during a high powered meeting held yesterday. Extreme decline in the turnover however suggests that the local market participants are awaiting SC’s decision on Karachi unrest mainly due to apprehensions expressed by political pundits regarding political reaction.
Hasnain Asghar Ali at Aziz Fidahusein said that dips in the dividend yielding stocks should be awaited for making fresh bets for trading and placements, while strength in high priced stocks failing to find follow-up support and struggling to find sustainable multiples, along with the stocks facing wrath of increasing input and decline in local and export sales. “The companies running on high debt portfolio are likely to have a maximum impact of the gas curtailment situation, thus forcing a recommendation of sell on strength, while day and short term traders can even opt for ‘short selling’,” he added.
