Tariq Hussain Khan, researcher at Atlas Investment Bank said that rising interest rates and an overbought situation could hardly bring about any negativity among investors, as institutions and punters went ahead with their investment plans.
Privatisation hype in PTCL, PSO and PPL coupled with higher earnings prospects in blue chip items delighted investors, while the fertiliser rally gained additional momentum. Sui Northern remained in the spotlight as the government is expected to soon reach a decision on the gas pipeline projects while the banking sector managed to ride the positive tide in anticipation of increased advances and growth in credit offtake.
Tanvir Abid, head of research at Live Securities that the rally during the last two months has been spurred by privatisation developments and excellent corporate profitability. Nonetheless, a major factor-contributing upsurge was reports of buying by foreign funds. This could explain the positive activity in the index heavy weights such as OGDC, PTCL and SNGPL. Bullish activity in PPL persisted with the scrip once again closing at the upper circuit level at Rs 204.45. PSO was also one of the star performer, posting a 5.2 percent gain to Rs 385.80, though it was down from its intra-day high. OGDC nearly managed to touch the coveted level of Rs 100 on strong earnings expectation. Sui Northern Gas continues to buoy, as in recent times there have been renewed possibilities of progress on the regional gas pipeline project.
Dewan Salman closed at the upper circuit on rumours of gas discoveries by its subsidiary.
Hasnain Asghar from Aziz Fidahusein said that the statement by privatisation commission regarding sell-off for PSO and PTC allowed the index to move higher. The bull run spilled to PTC and OGDC, both having a high weight in the index ,allow the market to see an all time intra-day high of 7769.
Although the news of exposure and capital adequacy as expected made its way in the second session. Buying on dips restricted any adjustment and the index managed a positive closing. Technically initiation of correction (most likely carrying the reason of capital adequacy/exposure) can lead to an adjustment of 2-3 percent. The ongoing rally backed by fundamentals can however allow the index to reach the land mark levels on the developments with regards to improving relations with India and keen foreign interest in privatisation and infrastructure are termed positive.
PTCL registered a gain of Rs 1.15 to Rs 682.0 on a volume of 249 million shares, OGDC moved up to Rs 97.95 from Rs 94 on a trading of 207 million shares, Sui Northern Gas finished at Rs 72, ie higher by Rs 4.75 on business of 79 million shares, PSO accelerated to Rs 385.80 from Thursday''s closing of Rs 366.75 on deals of 58 million shares and Fauji Fertiliser Bin Qasim denoted an increase of 60 paisa to Rs 32.10 on transaction of 57 million shares.