Hefty volumes and gains in OGDC, besides wide spread trading opportunities to the market, allowed the benchmark to continue scoring, while government’s plan of bringing public offer of PPL and convertible bonds of OGDC will certainly inject fresh liquidity in the financial circuit, which has been deserted due to ballooning circular debt.
Market analysts believe that implementation of the plan will indeed allow exploration and various listed companies feel the heat of financial crunch, due to circular debt, to continue with cash payouts to share holders, thus keeping interest of local participants alive in the beneficiary stocks.
The KSE-100 index closed at 11,923.59 levels marked by a gain of 178.53 points, while total volume and total value stood at 58,538,858 and 4,650,971,156 respectively. The KSE-30 index gained 135.02 points to close at 11,579.97 levels, while the All Share index closed at 8322.78 levels after gaining 115.45 points. Out of total 358 scrips, 141 advanced, 125 declined and 92 remain unchanged.
Gas curtailment to fertiliser companies getting input from Qadirpur field and fulfilling demand through import, however, stayed a point of concern, along with cold ties with US that has had its impact on loan dispatches from various international organisations, thus disallowing the wider market to follow the pace of gains in the benchmark. Talks of block trade in OGDC at higher rate kept buying interest alive in the stock that was generally executed by short term traders.
Leverage facility indeed allowed locals to participate with improved strength, however, various concerns on macro and budget leaks, suggesting new taxes and likely increase in existing slabs, did keep the trading horizon narrow. Hasnain Asghar Ali at Aziz Fidahusein said that besides inviting off-loading in wider stocks, caution however stays the call amid dips in the consistent dividend yielding stocks, mainly from those likely to escape the tax wrath in budget.
