The local bourse has, finally, witnessed a fresh wave of bullish sentiment after a long bearish spell of over 444 points, which started in the preceding month. Over the last three days, bullish fervor gripped over the benchmark-100 as it crossed the 12,000 level. However, selling pressure resulted in a close below 12,000 points. Despite better performance, top tier stocks were unable to attract investors; hence average daily turnover remained at merely 63 million shares.
Among the major contributors, OGDC finally came back strongly to support the stock market with a gain of Rs 9.0 per share. OGDC, single handedly, fueled the bull with around 167 points, contributing around 67 percent of the total points gained during the week. OGDC may be considered as a lucky charm for the market, which can change the sentiment overnight.
Meanwhile, the result season is in full swing as Lucky Cement announced a fairly expected result of Rs 8.62 per share for 9MFY11 versus the actual Rs 8.65 per share, said Bilal Asif at HMFS. Furthermore, APL and POL was inline, HUBC fairly better while KAPCO’s result was lower in contrast with consensus of analyst expectations.
The current result season can be considered as a mix bag, but it has provided ample support to the index. The upcoming week will see major result of banking stocks, fertiliser and E and P companies; hence it is fair to say that the upcoming week may be considered as a make or break week for the current rally. The stock market exhibited inflow of foreign funds of around $6.5 million in a single day, which changed the overall balance towards positive flow for current week at around $1.11 million.
Finally, 57 percent of the KSE-100 index was tilted towards the green zone, largely backed by top tier stocks, whilst oil and gas sector and cement semi twin remained in the limelight. ABL, followed by MCB, also added few points towards the index.
