The market extended the overnight gains with sharp rally in PSO, which later spilled over to other scrips resulting in across the board buying.
According to stock analysts, the market opened above previous day's closing level, with aggressive buying in fuel and energy sector, that helped bulls rule the market from fist to the last minute of trading. There were a number of supporting news reports like privatisation of state run entities and statement of Natwar Singh on Pak-India relations lifted the sentiment up, brokers said. Institutions were the key force behind upward rally, while interest from individuals was also overwhelming, they added. A broker said due to weekend and Ashura, people were expecting pressure and weak closing Friday, but to their surprise the market tone remained positive and aggressive.
Besides, PSO, ICI, Sui Northern, Fauji Fertiliser and OGDC were other major gainers, while Nishat Mills and ICI led the loser's column. According to brokers, volume also showed an encouraging improvement, which indicated investors' growing enthusiasm in the market.
According to them, the market tone is very aggressive, which seems continuing after Ashura, provided nothing untoward happens. He also advised people to play carefully and avoid over-trading to remain on the safe side.
The market on Friday broke all records and touched new highs, both in terms of high index closing and high capitalisation, said Ahmed Nabeel, head of operations, Invest & Finance Securities Ltd. The LSE index Friday closed at 3911.86 points, while KSE at 7733.33 points after touching 7769 points. This shows that the market has gone crazy, he remarked. The market even least bothered to news about increase in Pakistan's external and domestic debts and US threats to Syria and Iran, he added.
According to him, interest shown by Malaysians in PSO and privatisation of 51 percent shares of PPL and above all Indian foreign minister Natwar Singh's comments added fuel to the fire and the market skyrocketed, touching US $36 billion capitalisation. About the future course of the market, Nabeel pointed out that if 9th and 10th Muharram passed peacefully, the next week would take a no time to touch 8,000 points at KSE. However, in such circumstances hit and run policy is the best technique in the capital market while investment in real estate business is also still feasible, Nabeel viewed.
Of a total of 97 scrips changing hands, 34 improved in worth, 18 landed in negative column, while 45 were intact to its previous levels. PSO improved by Rs 18.00, ICI Pakistan Rs 6.35, Sui Northern Rs 4.75, Fauji Fertiliser Rs 4.05 and OGDC Rs 3.55. In negative zone, Nishat Mills lost Rs 3.50, Askari Commercial Bank Rs 1.15, Soneri Bank, Union Bank and Faysal Bank Re 1.00 each.