The KSE-100 index managed to post decent gains today despite another attack at navy forces in the city. The index closed 19 points up at 11,967 with 113 million shares traded, down 21 percent from yesterday. The KSE 100 index closed at 11,966.67 with a gain of 19.23 points and total volume stood at 57,795,523 along with the total value of 2,967,349,754.
Cash payout from PSO failed to encourage any positive activity in the stock owing to accumulation of circular debt on its balance sheet. ICI announced 1Q2011 EPS at Rs 4.50 which was up 57 percent from the same period last year. FII’s were rumored buyers in energy scrips while local investors heavily purchased stocks of refineries and third tier banks. The benchmark index began on a muted note with little or no volume across the board drifting the bourse in both directions. However, limited interest in top shelf securities, FFC, FFBL, NBP, OGDC, PTC, ICI, PSO and NML and third tier stocks SILK, NIB, and LOTPTA brought punters, jobbers, individual and institutional investors into the ring.
After back-to-back high volumetric sessions, the local equity market took a breather, while high volume contributors from previous sessions witnessed a technical adjustment, while front line low risk and high dividend yielding stocks invited accumulation on discounts. The expensive stocks exposed to various threats continued to invite offloading on strength, the sentiment however stayed weak due to early morning blast and rising concerns on economic and financial horizon.
Silk bank emerged a major volume contributor as the stock contributed more then 30 percent of the overall volume, strategic buyout or group support indeed offering various trading opportunities to the market men. In addition to allowing the turnover to remain above the 100 million mark with various opportunities presented by post results sell-off, corporate influx in selective stocks did allow snap rallies in post midday trade.
Although plans to settle the ballooning circular debt issue have been unveiled, actual tangible steps are still awaited, while the threat of a flare up in inflation persist while a stringent monetary stance might continue to suffocate the economy. Trade ties and a positive outcome in talks with India have the potential of addressing output and input cost concerns of the industrial sector.
