The KSE-100 index gained 189.28 points, or 2.3 percent, to 8436.62 as compared with 8247.34 of Monday. The stock market was closed on last Friday because of Shab-e-Qadr (27th Ramazan). The market will now open on Monday, November 8, following Eid-ul-Fitr holidays starting November 3.
The market recorded appreciable gain after Privatisation Commission released a statement saying that the deal with Etisalat was intact and negotiations would held after Eid-ul-Fitr.
Humayun Soomro from Akbarally Cassim said that last week's technical correction had brought the scrips at attractive buying levels, thus adding fuel to the positive sentiment. The major factor behind this upsurge was that PTCL privatisation deal with Etisalat was going through.
Contrary to general perception, the market finished on a strong note and added 189 points to close at the 8436 level. It touched 8439 level and maintained its steady growth throughout the day. However, trading volumes remained low at 252 million shares but up by 8 percent as compared to Monday's turnover of 234 million shares. Another extension in discussions between the GoP officials and Etisalat Group sparked the rally as investors picked fresh position at every level, resulting in handsome gains towards the end.
Other than that, better than expected corporate earnings, particularly in banking and cement sectors, forced the investors to build fresh positions before the long Eid-ul-Fitr holidays. In all, 297 companies were traded, with 204 in the positive, 65 in the negative and 28 maintaining their previous positions.
Irshad-ul-Haq from Elixir Securities said that the market rebounded on positive news emanating from PTCL privatisation saga "as it now seems that the deal will finally see the light of day". The banking sector showed remarkable strength, he added.
"We feel that trading in PTCL will remain a risky proposition until the privatisation issue is amicably resolved", he said.
National Bank, leading from the front, closed limit up at Rs 160.75 on the back of good corporate earnings, followed by Askari Bank and Union Bank which closed at their respective circuit breakers. The market looked set to continue this bull-run but likely to continue to be volatile. Participants should trade cautiously without over-exposing themselves to a jerky market.
Hasnain Asghar from Aziz Fidahusein said that technically the index would continue to find support around 8325-8333 although the net adjustment in the month of Ramzan was 44 points with comparatively thinner volumes. The index registered wild movement after making a high of 9004, and the low of 8122 invited support, and the index finally closed the holy month with net loss of 44 points.
The changing economic figures regarding reduction in GDP growth target and constant reduction in the country's dollars reserve and the expected high cost of rehabilitation to the earthquake victims continue to haunt the stakeholders. It is, therefore, recommended to focus on stocks reporting healthy earnings while trading option should only be exercised in the stocks inviting a healthy turnover.