The stock market for the third consecutive session on Wednesday showed appreciation and entered the 5300 points zone and volume recorded was third highest in the history of Karachi Stock Exchange.
The KSE-100 index showed a gain of 43.16 points, or 0.82 percent, to 5310.04 as compared with 5266.88 of Tuesday.
The turnover amounted to 907 million shares as against 754 million shares. The market capitalisation was Rs 1.418 trillion, up from Rs 1.407 trillion.
Hasnain Asghar of Aziz Fidahusein said that the bulls, inspired by the improving country's fundamentals and healthy corporate announcements, held on to the driving seat.
A slow opening soon found buyers in the cement, fertiliser and banking stocks. The positive sentiment and healthy turnover invited the punters who continued to focus on technical charts, thus ignoring the fundamentals, and jumped into the comparatively high-risk stocks.
The sentiment, however, invited portfolio investment in the main stocks, thereby allowing them to perform with the market, and the index continued the record-breaking spree and made another high of 5646 points.
Offloading towards the end in the speculative stocks led to an adjustment of 36 points on the rumour of exposure calls.
It is therefore recommended to opt for low risk stocks as the punters-driven rally is likely to witness extreme movements directed by COT and personal sentiment.
Technically, however, the index registered yet another highest closing. Support, however, continues to come around 5242-5250 while immediate resistance stays at 5338-5346.
Shahab Farooq from First Capital Equities said that another milestone was achieved by the market as the KSE-100 crossed 5300 level, making another historical breakthrough as investors were bullish in OGDC, PTCL, the Suis, Pakistan Oilfields and the cement sector.
Another positive session proved a greater appetite in the market. Though the COT rates and volumes have been escalating, the sentiment remained positive as evidenced from the rising trend in volumes during the day.
It seemed that the investors had overlooked the level that had been showing an overbought situation.
"We are of the opinion that the profit taking/technical corrections would provide stability in the market," said Tariq Hussain Khan, manager research at Live Securities. "We believe that this bull-run might not be sustainable, as the market has entered the danger zone."
The market stepped up further, where gas, cement and power sectors caught fire as the market participants picked fresh positions.
OGDC rose 35 paisa to Rs 63.55 on turnover of 124 million shares; D.G. Khan Cement closed at Rs 55.80, ie higher by Rs 1.20 on trading of 107 million shares; Sui Southern lost 20 paisa to Rs 37.25 on business of 76 million shares; Sui Northern Gas moved up to Rs 70.10 from Rs 69.15 on deals of 54 million shares; and PIAC rose five paisa to Rs 26.60 on a volume 49 million shares.
Comments
Comments are closed.