Trading started with a bullish note and bulls got control of the driving seat from the outset leaving no chance for bears to show presence at any stage. Every one appeared to be in a buying mood responding in positive to President Musharraf's televised address to nation on Thursday, stock analysts said, adding he (Musharraf) presented a very positive economic outlook of the country which was considered a positive sign for the capital market by investors and they indulged in fresh buying.
However, some profit-taking was seen in second session but its impact was minimal on overall sentiment, they said. Fuel and energy sector took the lead with Pakistan Oil Fields and PPL emerging as the most favourite scrips of the day followed by Adamjee Insurance, OGDC, PSO and some banking stocks. As the President in his speech made no announcement about big dams, therefore cement sector remained weak, brokers said but added that his saying that he will soon give positive news to the nation in this regard should be taken as a positive development.
The year 2004 ended with new records of highest ever closing ie 6218.46, highest ever index of 6222.27 at KSE and new peaks of high market capitalisation and badla capitalisation, said Ahmed Nabeel, head of operations, Invest & Finance Securities Ltd. As compared to last year, the market gained 1746.86 points with an increase of 39 percent over 2003. (On December 31, 2003, KSE index was 4471.60).
He added that President Musharraf's speech added fuel to fire and restored the confidence of investors in the capital market as well as real estate investors. In president's speech the indication of dams and mega projects was given which involved 60 billion of rupees and announcement of dams soon kept the door open and investors' hopes alive.
He also presented picture of a stronger Pakistan on economic front that also encouraged the market sentiment. Oil and gas sector gave the real boost to the market and contributed 45 percent of the total volume of KSE. There were also reports of floating another 5-percent of OGDC shares in near future @ Rs 70/- or above, which caused fresh buying in the market.
Moreover the rumours of Tal discoveries inauguration gave upward surge to the beneficiaries ie OGDC, POL and PPL.
About the future scenario, Nabeel said: "It will inshallah remain in positive mood till 6,400 level if other things remain the same and no unforeseen event occurs." After that, he pointed out heavy corrections will be due, therefore, selective buying and short positions are advised, Nabeel said.
Out of a total of 96 scrips, 21 improved its worth, 19 showed negative signs while 56 maintained its previous levels. Among major gainers, Pakistan Oil Fields was up by Rs 12.60, PPL Rs 6.95, Adamjee Insurance Rs 3.75, PSO Rs 3.35, and OGDC Rs 2.60. In minus zone, Picic Commercial Bank lost Rs 0.80, Chakwal Cement Rs 0.50, MCB Rs 0.45, Sui Southern Rs 0.35 and DG Khan Cement 0.30. OGDC led the market by volume with 26.904 million shares followed by Fauji Fertiliser with 7.841 million shares.