The volume amounted to 676 million shares against 633 million shares. The market capitalisation soared to Rs 2.736 trillion from Rs 2.643 trillion.
OGDC, the powerhouse of the index, hit its upper circuit level. PTCL, whose bidders for privatisation were short-listed last weekend, also came in the limelight and gained 1.4 percent to close at Rs 88.05. However, the Rs 90 barrier for PTCL is proving to be a big hurdle. PSO also took full advantage of positive developments on its sell-off front and regained 2.7 percent to close at Rs 482.70.
"I am pretty uneasy with the market levels and the recent bullish run. Of course the movement seems abnormal and it resembles 'bubble creation' in the market. I would advise caution to the investors," said Ali Farid Khwaja, Economist at Alfalah Securities.
"The recent run in the stocks has been mainly fuelled by privatisation rumours. Hence, any negative news, ranging from delays, unfavourable pricing, etc could trigger a fall in the index. The economic fundamentals are no doubt very healthy and do justify a higher index level, perhaps even beyond the current level. However, my main cause of concern is the pace with which market has gone up," he added.
The market exhibited a certain degree of 'privatisation sensitivity', which is a risk that needs to be factored in while making investment decision. The sudden increase in the prices of the corporation up for sale would also cause problems for privatisation as the PC board would now feel uneasy while setting the price level for the privatisation. In just the last week, OGDC was up 19.7 percent and PTCL was up 13.4 percent and it is these stocks which are moving the index, he said.
"I think the SECP and KSE have to beef up their risk management procedures and controls. The test of the market would be the coming two weeks when the news of privatisation unfolds," Farid said.
He went on: "However, on a long-term basis, the economy is well set on a high growth path. All the economic indicators are healthy and I think this would translate into higher corporation profit margins in the future. Privatisation itself would bring in efficiency gains and productivity improvements, which would be the main propellants of the long run economic growth. Considering the economic and political scenario, I think the market valuations need to be re-rated. Foreign investors are increasingly eyeing Pakistan's market, which bodes well for the economy, and in turn for the capital market. However, at present, I think any market strategy has to be cautiously positive."
"We are of the opinion that although the upsurge at the stock market has remained a 'One stock show' (that's OGDC) for the past several days, supplemented by the PSO, PTCL and NBP, the 100-index would continue tantalising to close above its key resistance level of 10,000," Humaira Zaheer, head of research at Capital One Equities said. "Keeping in view all odds and evens of the market, we suggest investors to focus on KSE-97, which has not yet performed significantly at the index. At this point in time, one should wait for a dip in the market and then buy with a medium-term yield play in perspective. The stock market would continue to meet the challenges related to economy, politics and internal dynamics of the local bourses where, based on sound fundamentals and better future prospects, one can focus on FFC, National Refinery and banking stocks like National Bank, Faysal Bank and Bank of Punjab."
Tanvir Abid, head of research at Live Securities, said that the fertiliser sector provided much muscle to the rally as Fauji Fertiliser Bin Qasim and Engro both hit their upper caps.
Fauji Fertiliser also posted a 3.6 percent gain to Rs 175.50. SNGPL gained 6.9 percent following clarification that the US is not exerting any pressure to abandon a potential gas pipeline project with Iran. Massive activity was seen in the technology and telecom sector too as TRG and Telecard both gained Rs 1.50 to close at their upper circuit levels. Going forward, it remains to be seen whether the market sustains itself above the 10,000 points level or undergoes further consolidation. PSO is the favourite stock at current levels.
Tariq Hussain Khan, research analyst from Atlas Investment Bank, said that due to well-heeled reports regarding support by USA over the proliferation issue fuelled the rally. Among other triggering factors, strengthening of Pak-India bilateral ties created zeal in investors.
Though the trading volumes witnessed a slight increase, future contracts remained above last week's average turnover. E&P, Fertiliser, Cement and Synthetic sectors remained in the limelight due to renewed interest revealed by institutional investors.
Khalid Iqbal Siddiqui, head of research from Investcapital Securities said that confidence in the government's privatisation program has boosted the index to this landmark. Investors are flushed with liquidity and stock market is offering best return on investment.
Ahmed Ashraf Sheikh from Akbarally Cassim said that further bull-run is being foreseen in the market as punters are eyeing an index level of 12,000. "We would, however, caution investors at these levels as the market has reached extremely high point." NBP and PTCL look promising at their current levels as market punters are expecting a bull-run in these companies.
The badla decreased by Rs 5 billion. Decline was witnessed in PTCL and PSO with the exception of OGDC, NBP and Bank of Punjab where badla increased by 4.15 percent and 9.13 respectively as market punters were expecting price appreciation in these shares.
The badla in Hubco increased as investors are bullish in this company due to its under-valuation. OGDC moved up to Rs 176.55 from Rs 164.25 on business of 180 million shares; PTCL gained Rs 1.30 to Rs 88.15 on trading of 105 million shares; Fauji Fertiliser Bin Qasim rose Rs 2.60 to Rs 37.90 on turnover of 52 million shares; D G Khan Cement denoted an increase of Rs 5.20 to Rs 80 on deals of 45 million shares; and Sui Northern Gas showed an increase of Rs 5.25 to Rs 78.25 as around 36 million shares changed hands.