As anticipated, market remained thinly traded with an activity of 56 million shares during the entire day. The benchmark KSE-100 index however gained 150 points on the back of buying interest in selective heavy weight stocks. ENGRO stood as the volume leader (4.7 million shares traded) on the news that government is evaluating alternatives to resume gas supply to company’s new urea plant.
The KSE 100 index closed at 11957.30 levels with the gain of 149.84 points, while KSE 30 index gained 153.88 points to close at 11292.57 levels. All Share index closed at 8274.17 levels after gaining 98.61 points. Total 151 scrips advanced 82 declined and 103 remain unchanged out of total 336 scrips traded. PSO gained 4.7 per cent on the expectation of outstanding circular debt being converted into government papers today. This led to a flurry of activity in the entire energy chain as all major oil companies including OGDC, POL, PPL, ATRL and NRL closed in green. The index heavy OGDC and victim of circular debt PSO were jumping higher and higher backed by rumours of circular debt resolution. The top three index contributors added over 100 points toward the total market move of 150 points.
Market intelligence regarding possibility of 50mmcfd gas will be supplied to Engro pushed the stock price upwards. The market was more inclined towards the positive direction largely in the second half of the trading session. Previously November 4, 2011 was announced by various government representatives for conversion of Rs300 billion power sector debt into the government bond. We believe with long weekend ahead of us, market direction may not be determined going forward, said Bilal Asif, Head of Research at HMFS.
