KSE-100 Index: Daily Overview – October 28

After four sessions of bearish activity, the KSE-100 index gained 278 points or 2.47% to cross the psychological barrier of 11,500 and finish at 11,561 points on Friday, October 28.

It had been largely anticipated by observers that political processions in Lahore might have a negative impact on the market, but positive activity in OGDC, FFC and PSO ensured that these talks had little impact on the index.

After shedding almost 400 points since October 21, the index outperformed its previous best in the month of October and kept the KSE-100 index above the resistance level of 11,100 points. The dip was largely attributed to selling by foreign investor, but
it seems that the trend has either halted or has been absorbed by the local investor.

OGDC announced earning of Rs. 5.10 and a pay-out of Rs. 1.50 yesterday, but the market failed to absorb this news citing a general negative sentiment throughout the market. Earnings were above what analysts had predicted, but the pay-out was somewhat below
the market expectations. Nevertheless, investors reacted positively today which pushed the scrip to close at an upper lock.

FFC closed at an upper lock as well, primarily due to an anticipation of a positive result tomorrow, i.e. Saturday, October 29. It is expected that FFC will announce inflated earnings and thus attracted investors after a lean period.

Mr. Ali Nadeem, Manager of Equity Sales at First National Equities asserted that OGDC and FFC improved the overall sentiment of the market, but volumes remained on the lower side. A weekly-low 68 million shares were traded on the board and this aspect continues
to haunt foreign investors.

PSO closed on an upper-lock today after plunging Rs. 50 in value over the past week. Ali added that with result due on Monday, October 31, a technical correction was the need of the hour for the scrip to attract investment.

Looking forward to next week, ENGRO and PSO are expected to determine the general trend of the index. Ali expects a cash pay-out from ENGRO along with a result that exceeds market expectations. However, with gas issues still surrounding the fertiliser sector,
it remains to be seen how things unfold.

Short URL: https://www.newspakistan.pk/?p=1952

Posted by Hammad Malik on Oct 28 2011. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry