Index crosses 12,000 level

The local share market witnessed bullish trend on Thursday and the benchmark KSE-100 Index breached 12,000 psychological level to close at 30-month highest level of 12,031.46 points with a net gain of 145.44 points. The foreign investors support continued while local retail investors and institutions also joined the rally as an across the board activity was seen throughout the session.
Trading activities also significantly improved as the volumes at ready counter increased to 140.044 million shares as compared to 99.797 million shares traded on Wednesday. The overall market capitalisation increased by Rs 39 billion to Rs 3.270 trillion. Out of the total 400 active scrips, 234 closed in positive and 146 in negative while the value of 20 scrips remained unchanged.
Lotte Pakistan PTA was the volume leader with 17.276 million shares and gained Re 0.56 to close at Rs 13.75. Fresh buying was seen in the banking sector, as NBP, NIB Bank, Bank Al Falah and SilkBank increased by Rs 2.04, Re 0.30, Re 0.20 and Re 0.07 to close at Rs 75.92, Rs 3.08, Rs 11.41 and Rs 2.66 with 11.194 million shares, 7.096 million shares, 5.319 million shares and 3.440 million shares respectively. However UBL lost Re 0.17 to close at Rs 68.02 with 7.387 million shares.
The investors' interest was also seen in the E&P sector, as POL surged by Rs 8.51 to close at Rs 298.12 with 5.260 million shares. Fauji Fertilise Bin Qasim lost Re 0.16 to close at Rs 36.30 with 4.525 million shares.
Nishat Mills gained Re 0.96 to close at Rs 63.66 with 4.099 million shares. PTCL inched up by Re 0.06 to close at Rs 19.51 with 3.413 million shares. Indus Dyeing and National Refinery were the highest gainers increasing by Rs 14.96 and Rs 13.25 to close at Rs 321.88 and Rs 280.36 respectively while Rafhan Maize and Lakson Tobacco were the worst losers declining by Rs 58.44 and Rs 14.49 to close at Rs 2086.00 and Rs 295.50 respectively.
Hasnain Asghar Ali at Aziz Fidahusein Co said that across the board, activity both through local and offshore channels allowed the benchmark to attain yet another milestone of 12000 levels, main board stocks, mainly banking and oil did display strength, volumes however failed to match the pace, short term traders however did participate in the rally, horizon stayed restricted, due to a disturbing wider picture.
He said various news-flows suggesting mergers and acquisitions in banking sector, latest being interest shown by Chinese concern in acquiring a large cap bank, and anticipation of stock and cash dividends by leading banking stocks despite apprehensions of lower then expected earn in the last quarter results, duly endorsed by the frontline participants of the industry, kept the banking stocks on gaining grounds.
The positively, although lacked turnover, was soon joined by oil sector stocks, wherein gains can be easy justified due to sustainability of international oil prices at the higher end of the curve, besides providing trading opportunities to the market men, wherein quantum and trading horizon stayed clipped, allowed the benchmark to hit 12000, since the turnover failed to match the gains celebrations stayed on the lower side.
He said despite the fact that much of the activity had a colour of yearend portfolio dressing, apprehensions of rise in offshore activity and likelihood of early introduction of long demanded ready board leverage product, that has increased after the appointment of new SECP Chairman, the sellers stayed on the back foot, however stock and sector swapping, that on one end led to increase in turnover, did keep certain stocks from both front line and the mid-tier segments under pressure, while high dividend yielders kept the strength alive, along with successfully inviting renewed buying interest on dips.