Bulls rule the roost on stock market

Despite cautious stance by the investors due to law and order situation in Islamabad, the local share market managed to close in a positive note as the KSE-100 index recovered 59.18 points to close at 13,869.03 points level on the back of fresh buying in oil and cement sectors on Wednesday.
On the other hand, the parallel KSE-30 index gained 85.73 points to close at 17,066.50-point level. The market started on a positive note and hit 13,928.94 points intra-day high level, however, the index closed at a slightly low level due to profit-taking in select stocks.
The market witnessed dull trading activity as the ready market volume declined to 359.878 million shares as compared to 411.960 million shares traded a day earlier. The futures market turnover also decreased to 47.771 million shares as against 62.545 million shares previously.
The overall market capitalisation, however, surged by Rs 32 billion to Rs 4.061 trillion. Trading took place in 405 scrips, out of which 240 scrips closed in positive column and 131 scrips closed in negative column, while the value of 34 scrips remained unchanged.
TRG was the star performer with 43.672 million shares and the scrip surged by Rs 0.40 to close at Rs 18.10 followed by Bosicor, which gained Rs 1.00 to close at Rs 20.20 with a total volume of 28.508 million shares.
The fresh buying was witnessed in cement sector as Fauji Cement and DG Khan Cement increased by Rs 0.90 and Rs 2.25 to close at Rs 20.70 and Rs 118.85 respectively. Fauji Fertiliser Bin Qasim also remained active and surged by Rs 0.05 to close at Rs 39.45. The oil sector also witnessed fresh buying on the back of increasing oil prices in the international market as POL increased by Rs 13.05 to close at Rs 329.10.
The banking sector, in overall, witnessed selling pressure, however, Bank Al Falah remained active and gained Rs 1.55 to close at Rs 61.45. Nimir Resins surged by Rs 1.00 and closed at Rs 8.00. Azgard Nine gained rupee one to close at Rs 50.50. Arif Habib Sec, however, lost Rs 0.05 to close at Rs 121.45.
Jahngir Siddiqui Co and Shell Pakistan were the highest gainers, which gained Rs 28.50 and Rs 21.85 to close at Rs 598.50 and Rs 458.85 respectively, while Wyeth Pak and Siemens were the highest losers, losing Rs 104.90 and Rs 50.00 to close at Rs 2030.00 and Rs 1600.00 respectively.
Ahsan Mehanti at Shehzad Chamdia Securities said that fresh buying was witnessed in oil sector on the back of increasing oil prices in the international market, which has reached at 73 dollars per barrel.
Some cement sector stocks also witnessed fresh buying followed a news that DG Khan Cement has also planned to launch its GDRs in the international market. Fauji Group was also active as the Fauji Cement and Fauji Fertiliser closed in positive.
The banking sector, however, faced selling pressure. Although the NIT announced a record dividend, however, according to the investors, it was much lower than their expectations.
Kamran Naqvi, head of Equity Trade at Atlas Capital Markets, said that the investors took cautious steps towards future investments. Initial upsurge in NBP's price triggered due to expectations extraordinary NIT dividend in the range of rupees eight to rupees nine, which later on cooled down after the announcement of Rs 6.20.
Oil sector witnessed remarkable price appreciation after a long time. POL remained leader in the sector as rumours regarding significant increase in other income due to heavy investment in NIT units, remaining throughout the trading session. Expectation of announcement of new petroleum policy by the government of Pakistan also triggered volumes and price appreciation in oil sector, especially in POL and PPL.