Strong support from financial institutions and better than expected results from National Bank of Pakistan and Pakistan Telecommunication Limited helped paved the way for bulls to strike back, helping the index to breach the 5400 level.
The KSE-100 index recorded an increase of 83.85 points, or 1.57 percent to 5430.43 on Friday, as compared with 5346.58 of Thursday. The volume showed a small jump and settled at 498 million shares as against 421 million shares.
The market punters during the first session moved cautiously and executed deals on those scrips, which hold promise of good returns.
PTCL, NBP, MCB, Sui Northern Gas and Bank of Punjab helped the market to finish with small gain at the end of the first session.
However, following the announcement of financial results of National Bank of Pakistan, which posted a significant gain in its earnings boosted the sentiment of the market men.
The scrip following a jump of 76 percent in profit before tax and 73 percent in profit after tax scored improvement of 7.5 percent and close on an upper limit.
Following the improvement in NBP, PTCL, OGDC, D.G. Khan Cement, Sui Southern Gas and Bank of Punjab got active and moved in the positive column.
Lowering of badla rates and volumes also helped sparked a rally, allowing bulls to take control of the proceedings.
Though the majority of the companies have announced their financial results, the traders were of the opinion that the index would sail above 5500 level next week as the market has enough liquidity and presence of weak holders have reduced following the decline in badla values.
Tariq Hussain Khan, manager research at Live Securities said that last day of the week closed on a healthy sign as the market gained significantly despite continued selling pressure at inflated level by small investors.
It was believed to be a positive pattern generated by encouraging reports related to aid/package worth of $701 million for Pakistan by US administration.
Furthermore, better than expected corporate earnings in the blue chip items restored the investors' confidence to accumulate on dips.
The market continued to maintain its overnight positive trend and breached its psychological barrier of 5400 with relatively heavy volumes.
It seems that prominent investors have entered in the ring with new buying orders for their long-term investment.
Almost all major stocks appreciated, indicating aggressive buying. Since the market has recovered significantly, trader expect that it would touch 5700-5800 level owing to restoration of investors' confidence.
PTCL gained 95 paisa to Rs 44.30 on a volume of 62 million shares, OGDC closed at Rs 67.75, ie higher by 20 paisa on a trading of 52 million shares, Fauji Cement moved up to Rs 16.55 from Rs 15.35 on a business of 50 million shares, NBP showed a gain of Rs 4.80 to Rs 69.15 on a turnover of 46 million shares and D.G. Khan Cement improved by Rs 1.60 to Rs 58.35 as around 33 million shares changed hands.
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