The market maintained the overnight bullish trend and in first half of the session, the index went up over 50 points, but later due to pressure caused by profit taking, the gain was curtailed, analysts said. But despite intra-day pressure, which trimmed early gains, the LSE index managed to reach 3800 level, they added. MCB, PPL and Pakistan Oil Fields were the prime gainers receiving fresh buying.
According to analysts, PPL showed a vehement movement on the back of its privatisation news. According to the news, appearing in the national press, the Privatization Commission has offered 51 percent shares of PPL for sell-off, with the management control and sought Expression of Interest (EOI) on 'as is where is basis.' Banks and Adamjee Insurance and PTCL also did well and bagged fresh gains.
According to brokers, the market is likely to maintain the upward tempo but investors my shed their positions on the weekend. Fuel & energy sector, notably PPL and banks, continued to dominate trading and the market and surged to new high level, said Mirza Muhammad Irfan, equity research head of Capital Vision Securities Ltd.
In banking sector, MCB, while in fuel and energy stocks, PPL outperformed, he said, adding the latter showed a ferocious movement to reach the level where upward circuit breakers became operational. PPL performance is based on fresh news of its privatisation due to which it has turned very attractive for investment, he stated.
There is also a lot of room for further improvement in both Sui Southern and Sui Northern. PTCL has also started regaining strength and if it succeeds in consolidating itself at these levels, it would improve, he stated.
However, he pointed out that banks, which have been showing good performance on the basis their earning reports, are in overbought range now, and may take a technical turn at any time.
Likewise, cement sector is volatile because of conflicting news reports regarding construction of new dams, he further pointed out. Commenting on the chances of a major correction, he said it is long overdue but the aggressive institutional as well as foreign buying has averted it. At the moment, he continued, the market is relying on intra-day corrections for consolidation.
The sentiment is highly bullish and apparently there seems no change in it, however, pressure might emerge on Friday because weekend off-loading practice, Irfan observed.
In all, 89 scrips changed hands on the day, of which 26 improved, 23 showed negative signs, while 40 stayed pegged to its overnight positions. In positive zone, MCB was up Rs 4.95, PPL and Pakistan Oil Fields Rs 4.40 each, Adamjee Insurance Rs 3.20 and Nishat Mills Rs 2.95.
In negative zone, ICI Pakistan was down Rs 3.00, Rafhan Maize Products Rs 2.60, D.G. Khan Cement Rs 2.15, Maple Leaf Cement Rs 1.10 and Dewan Salman Fiber Rs 0.95.