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KSE index breaks 1,800 barrier

RECORDER REPORT

KARACHI: Equities maintained the winning streak on Tuesday and broke the barrier of 1,800 mark on hope that the government would soon privatise some of the state-run companies through the stock markets.

Reports indicated that the privatisation process of some of the state run utilities have commenced. The Privatisation Commission has called bids from interested parties to buy out stake in the liquefied petroleum gas operations of Sui Northern Gas, Sui Southern Gas and Pakistan State Oil. This development jacked up the prices of fuel and energy scrips.

The KSE-100 index registered a rise of 30.68 points or 1.71 percent to 1,825.99 from 1,795.31 of Monday. The volume amounted to million shares as against 223.281 million shares of Monday. The market capitalisation moved up to Rs 467.423 billion from Rs 460.039 billion on Monday.

Salman Ahmad of Finex Securities said that bulls were in full control of the proceedings. The sentiment has improved a lot and main reason behind the upsurge in the equities was the development on the privatisation front.

He said that soon the government would announce the privatisation policy aimed to protect the interest of the foreign investors. The government has targeted oil, gas and financial sector state-run companies to be offloaded on the priority basis. "The share prices of gas companies and PSO helped the stock market index to break the barrier of 1800 mark," he said.

Azhar Shehzad of City Securities said that closing above 1,800 index level was positive. The market closed on higher note for the second consecutive session, indicating a bullish development in the market, he said.

Azhar said that even the market was highly overbought on the weekly charts Relative Sensitive Index was above 70, weekly momentum studies were in the overbought territory but still the market was holding above support levels, i.e. 1700 index level because of supporting fundamentals. The major resistance came at 1,920 level.

Mohmmad Zubair Ellahi of KAB Securities said that the strong surge in privatisation process was pushing the market to new heights in recent past and the current tempo might continue with regular news inflow. The broader term outlook was still positive but profit realisation was important.

Faisal Abbas of AHR Securities said that continued institutional interest in high-cap blue chips helped the market to register an overall bullish day where the market closed with a handsome gain.

He said for lack of confidence in general public was visible because of recent landslide of about 100 points, making the market even more pure and stabilised, as the weak holders had already sold out their holdings.

Once again across the board buying interest was recorded which was quite diversified and fresh interest in textile, weaving and Modaraba sectors was witnessed. Faisal said that upcoming results of privatisation and resolutions of IPPs and Hubco-making the market more attractive psychologically helped the market to take fresh boost in the forthcoming sessions.

PTCL on a trading of 101.267 million shares gained 40 paisa to Rs 29.50, Sui Northern Gas on a business of 42.380 million shares moved up by Rs 2.25 to Rs 22.25, Hub Power moved up to Rs 27.70 from Rs 27.60 as nearly 40.611 million shares changed hands, PSO on a turnover of 23.811 million shares closed at Rs 232.60, higher by Rs 10.10 and ICI on a volume of 18.621 million shares shed 15 paisa to Rs 12.60.