KSE-100 index on Wednesday recovered 61.90 points to close at 13,556.73 points level against previous 13494.83 on the back of fresh buying by foreign investors, mainly in the banking sector. On the other hand, the KSE-30 index surged by 88.15 points to close at 16,897.79 points level.
The market started on a positive note and the KSE-100 index hit 13,597.74 points intra-day high. However it could not sustain that level due to profit taking in some select stocks, which pushed the index down to 13,556.73 points.
The market witnessed healthy trading activity and the ready market volume increased to 340.293 million shares as compared to 272.729 million shares traded a day earlier. The futures market turnover also increased to 56.427 million shares against 41.085 million shares changed hands previously. The overall market capitalisation surged by Rs 30 billion to Rs 3.941 trillion. Trading took place in 411 scrips out of which 203 scrips closed in positive column and 159 scrips closed in negative column while the value of 49 scrips remained unchanged.
Banking sector led the rally as Askari Bank, NBP, BoP and JS Bank surged by Rs 2.00, Rs 5.00, Rs 2.05 and Rs 0.80 to close at Rs 101.80, Rs 261.00, Rs 117.55 and Rs 19.95 respectively.
The Technology & Communication sector also remained active as TRG Pakistan gained Rs 0.50 to close at Rs 13.40, WorldCall Telecom surged by Rs 0.30 however Callmate Telips declined by Rs 0.15 to close at Rs 55.15.
In the other top ten volume leaders, Picic gained Rs 3.85 to close at Rs 81.15. DG Khan Cement witnessed selling pressure and lost Rs 0.15 to close at Rs 114.60. Arif Habib Sec declined by Rs 3.30 to close at Rs 121.10.
Nestle Pakistan and Bata (Pak) were the highest gainers which gained Rs 60.00 and Rs 10.00 to close at Rs 1490.00 and Rs 350.00 respectively, while Siemens and Sanofi-Aventis were the highest losers which lost Rs 30.00 and Rs 17.30 to close at Rs 1450.00 nad Rs 340.00 respectively.
Ahsan Mehanti at Shehzad Chamdia Securities said that the market witnessed a narrow range session on the back of uncertainty regarding PSO''s privatisation. Fresh buying mainly in banking sector supported the index to close in positive. The investor''s expectations regarding announcement of bonus by Askari Bank and dividend by NIT invited fresh buying in relevant stocks. The increasing portfolio investment in the country''s equity market shows that continuous interest of foreign investors in the country''s share market. Foreign investors took fresh positions mainly in banking sector stocks.
HasnainAsghar Ali at Aziz Fidahusein Securities said that absence of buyers in the main stocks invited CFS float on opening and the index in no time adjusted by 40 points. Support was prominent on dips mainly in the banking stocks, as the low-priced banking invited buyers on the unconfirmed news of management take-over either by foreign participants or by local banking giants.
Positive sentiment in the low price stocks soon spilled over to the main banking stocks mainly NBP and BoP. The expected positive response from UBL GDR offer was expected to tempt the government of Pakistan to take timely decision on NBP GDR as the growing international appetite for local banking assets has already been displayed by tremendous response on MCB GDR offering, Union Bank takeover, Prime Bank deal and Picic''s execution.
The growing free float percentage held by foreigners will certainly grow, thus allowing local funds to infuse further liquidity in listed stocks. The rumour that the government had already taken decision regarding NBP''s GDR offering, and BoP was also seeking an identical opportunity, and both had moved forward on this deal, triggered buying interest from initial hours.
Strength, therefore, invited short covering and the stocks not only allowed the sentiment to improve, the surge supported the turnover as well. Although, technically, the index yet again closed on the upper level of its technical resistance region of 13,550-13,557 and has been knocking at yet another psychological 13,600, it is an uphill task to test and breach the next resistance of 13,693-13,700 without any major correction.