KARACHI (January 10 2003) : Bulls went berserk on Thursday and the market reached the record high of 2829 points where financial institutions, retail investors and some of the leading brokerage placed fresh orders in PTCL, Sui Northern Gas and PSO.
The KSE-100 registered an increase of 51.43 points, or 1.85 percent to 2,829.59 points from 2778.16 points of Wednesday.
The volume amounted to 424.933 million shares as against 297.207 million shares.
The market after a slow start received heavy bouts from the retail investors and financial institutions increasing the index by bigger margins.
The cut in treasury bills was on the factor ignited the share prices.
The willingness of the financial institutions to lend money at these low rates how the excess liquidity was prevailing in the market.
An analyst said that low interest rates will have a positive impact on the earnings of most companies, new investment tends to depend significantly on macroeconomic conditions.
Flow of funds was immense and investors executed fresh deals in PTCL, PSO, Engro, MCB and Fauji.
The trend appeared to be positive as the market touched new high mark of 2829 points.
Most of the punters believe that the market is heading towards new high and 3000 points appeared to be achievable.
Driving force behind this upsurge was the interest of real investors as several entities are lifting shares, meaning genuine buying has set in.
During the morning session for short period the market received some battering from bears following the news that the India has conducted a nuclear missile, Agni.
But most of the traders and dealers believed that it is a stunt and a routine matter for India to conduct such tests.
Raheel Moosani of Moosani Securities said that the stocks rallied as investors brushed aside signs of further correction as market kicked off the day positively and whole session looked aggressive and remained full of life.
He said that the cut-off yield on six months treasury bills, further see a trimming of 50 basis points boosted the investors confidence endowed them with hefty returns.
Recent reduction in yields auguring that the excess liquidity would come to the stock market.
Fertiliser sector along with PSO and SNGP remained positive as institutions continued with demanding high yield dividend stocks.
MCB also contributed heavily both in regular and forward counters removing uncertainty that has dogged its share price in recent weeks.
Hasnain Asghar of Aziz Fidahusein said that healthy opening allowed the KSE-100 an early visit to 2800, profit taking at psychological did offer resistance, the constant buying allowed the index to consolidate around 2790.
The index under the shadow of aggressive buying in the giants of telecom, banking, fertiliser and gas sectors was allowed to rest above 2800.
The surge of 51 points depicts fresh in flow of funds as the inquiries were being heard in the high yield stocks thus depicting a healthy last session of the week Friday.
Technically market is expected to find support around 2825-2810, while the bulls are expected to stay intact thus disallowing any adjustment.
The new high are still awaited as the fundamentally strong stocks will continue to find buyers therefore the performing stocks can be looked for fresh entries.
Hubco lost 20 paisa to Rs 41.45 on a business of 85.788 million shares, PTCL gained 65 paisa to Rs 25.70 on a turnover of 79.138 million shares, Sui Northern Gas moved up to Rs 24.60 from Rs 23.15 on total deals of 52.78 million shares, PSO closed at Rs 232, ie higher by Rs 2.60 as around 34.102 million shares changed hands and Engro posted an increment of Rs 3.05 to Rs 97.40 on turnover of 26.095 million shares.