KARACHI: Optimism about uptick in stocks’ values in near future and expectations about receiving handsome payouts in this financial result season together placed the market over 5,800 points level successfully on Tuesday.
KSE 100-share index registered another gain of 62.90 points or 1.09 per cent and ended at 5,839.63 points. Its junior partner the 30-index rose by 132.09 points or 2.24 per cent to stand at 6,026.29 points. The optimism projected market to 5,890.61 points intra-day high in the middle of the second half of the session, witnessed an increase of 113.88 points from pre-opening level of 5,776.73 points.
The cautious behaviour of investors on strength, however, minimized the day notable gains to the closing level, as many of them (punters) opted to book profits in some of speculative stocks. Analysts said the declaration of Rs5 per share cash dividend by PSO despite the fact that the company registered over Rs10 billion losses in the half year end Dec 31 was investment friendly news for the equity investors. Moreover, MCB Bank has also recommended 10 per cent bonus share along with a final cash dividend at Rs2.5 per share yesterday.
Both the giant companies have announced their payouts in the line with market expectations and investors expect the same from the other blue-chips, which are lined up to declare their accounts for the period ended on Dec 31 this week. Analysts maintained that the current share prices on across the board were very much lucrative and most of them would gain capital in the weeks to come. The market was expecting to attract excessive liquidity in the system in future, as the central bank was likely to cut its discount rates by about two per cent in second half of the fiscal year 2009, they added.
The announcement of gas discovery by Oil and Gas Development Company, expectation of settlement of government debt and increase in furnace oil prices by oil marketing company played a role in supporting the market, said Ahsan Mehanti at Shahzad Chamdia Securities.
Hasnain Asghar Ali at Aziz Fidahusein said a positive response by India over Mumbai probe results by Pakistan and then peace treaty on Swat reduced the uncertainty about law & order in the country, which encouraged investors to inject fresh funds in equities. Aggressive stance by the local corporate sector and high net worth allowed the main board stocks to witnessed thorough consolidation and bull run in banking (MCB & NBP) and fertilizer (Engro & FFC), stocks led the show while selective cement stocks (having a lead on exports) got a positive response as well, while oil and gas sector witnessed some profit taking on strength, he added.
Overseas investors, however, withdrew another $1.8 million in this session at the local bourses, according to NCCPL website. The day turnover slightly decreased to 177.797 million shares as compared to 180.319 million shares changed hands yesterday. A dramatic surge in future market turnover was seen, as it jumped to 117 thousand shares against mere five hundred shares traded a day earlier.
The overall market capitalisation improved by Rs16 billion and stands at Rs1,824 billion. Out of total 287 actives, 159 stocks declined, 115 advanced, and the he value of remaining 13 stocks remained unchanged. Highest volumes were witnessed in Oil and Gas Development Company at 22.205 million closing at Rs54.13 with a gain of 24 paisa, followed by JS company at 13.104 million closing pegged at Rs33.78, Fauji Fertilizer Bin Qasim at 9.776 million closing at Rs17.52 with a loss of 18 paisa and Pakistan Telecommunication Company at 8.622 million closing at Rs15.50 with a loss of 47 paisa.
KSE 100-share index registered another gain of 62.90 points or 1.09 per cent and ended at 5,839.63 points. Its junior partner the 30-index rose by 132.09 points or 2.24 per cent to stand at 6,026.29 points. The optimism projected market to 5,890.61 points intra-day high in the middle of the second half of the session, witnessed an increase of 113.88 points from pre-opening level of 5,776.73 points.
The cautious behaviour of investors on strength, however, minimized the day notable gains to the closing level, as many of them (punters) opted to book profits in some of speculative stocks. Analysts said the declaration of Rs5 per share cash dividend by PSO despite the fact that the company registered over Rs10 billion losses in the half year end Dec 31 was investment friendly news for the equity investors. Moreover, MCB Bank has also recommended 10 per cent bonus share along with a final cash dividend at Rs2.5 per share yesterday.
Both the giant companies have announced their payouts in the line with market expectations and investors expect the same from the other blue-chips, which are lined up to declare their accounts for the period ended on Dec 31 this week. Analysts maintained that the current share prices on across the board were very much lucrative and most of them would gain capital in the weeks to come. The market was expecting to attract excessive liquidity in the system in future, as the central bank was likely to cut its discount rates by about two per cent in second half of the fiscal year 2009, they added.
The announcement of gas discovery by Oil and Gas Development Company, expectation of settlement of government debt and increase in furnace oil prices by oil marketing company played a role in supporting the market, said Ahsan Mehanti at Shahzad Chamdia Securities.
Hasnain Asghar Ali at Aziz Fidahusein said a positive response by India over Mumbai probe results by Pakistan and then peace treaty on Swat reduced the uncertainty about law & order in the country, which encouraged investors to inject fresh funds in equities. Aggressive stance by the local corporate sector and high net worth allowed the main board stocks to witnessed thorough consolidation and bull run in banking (MCB & NBP) and fertilizer (Engro & FFC), stocks led the show while selective cement stocks (having a lead on exports) got a positive response as well, while oil and gas sector witnessed some profit taking on strength, he added.
Overseas investors, however, withdrew another $1.8 million in this session at the local bourses, according to NCCPL website. The day turnover slightly decreased to 177.797 million shares as compared to 180.319 million shares changed hands yesterday. A dramatic surge in future market turnover was seen, as it jumped to 117 thousand shares against mere five hundred shares traded a day earlier.
The overall market capitalisation improved by Rs16 billion and stands at Rs1,824 billion. Out of total 287 actives, 159 stocks declined, 115 advanced, and the he value of remaining 13 stocks remained unchanged. Highest volumes were witnessed in Oil and Gas Development Company at 22.205 million closing at Rs54.13 with a gain of 24 paisa, followed by JS company at 13.104 million closing pegged at Rs33.78, Fauji Fertilizer Bin Qasim at 9.776 million closing at Rs17.52 with a loss of 18 paisa and Pakistan Telecommunication Company at 8.622 million closing at Rs15.50 with a loss of 47 paisa.
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