The volume, which had dropped to a single session total of 200m shares, soared to well over 300m, a normal figure in a bull market.
The sustained bull-run, in which the market capital swelled to a record Rs133 billion or over 4.4 trillion and the 100-share index by 475 points, reflects investors’ mood led by a section of foreign funds which covered positions in the leading oil and bank shares.
Stocks, therefore, finished with widespread gains as investors continued to build long positions on the banking, oil and cement sectors after reports of higher corporate earnings and expected handsome payouts.
“It appears to be a judicious blend of both local institutional and foreign buying expecting positive developments on the political front despite a loud whispering about the elections boycott”, leading analyst Ahsan Mehanti said.
He said foreign investors rarely re-enter the market but on assurance from some quarters which matter.
The locals follow them for good reasons as no one wants to miss a bait of capital gain.
During last week, the KSE index had gone up by about four per cent paving the way for a price flare-up on most of the low-priced blue chips counters.
Analyst Ashraf Zakaria said the market was relying on better corporate earnings and revival of foreign buying, although the year-end buying was still to emerge in a big way.
After the mid-week, the market advance was led by banking shares after reports that their managements were booking capital gains before Jan 1, when capital gain tax may be effective, a leading analyst Hasnain Asghar Ali said adding “there was, however, no dearth of ghost buyers at the prevailing rates”.
The KSE 100-share index maintained its upward drive for the third session in a row as investors did not want to miss the rising market and capital gains.
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It finished with an extended gain of 475.38 points or 4.5 per cent at 14,473.9 as compared to 13,998.52 a week earlier. Its junior partner, the 30-shares index, on the other hand, rose by 629.33 at 17,385.05.
Over the last three sessions, the market rose by 4.5 per cent, adding Rs133 billion to the capital to 4.462 trillion, a hefty increase in a week viewed by any standard, analysts said.
Massive rise of Rs19 in MCB followed by GDR-linked buying and other leading base shares, notably National Bank, OGDC, PTCL and Bank of Punjab were the chief contributors to the current rise in index.
Muslim Commercial Bank alone has the largest weightage 11 per cent in it and adds significantly to its rise in a single session, more than a half, than the combined.
“A section of the foreign investors is in the market and making selective covering purchases on the banking, oil and some other counters at the current lower levels”, analysts said but failed to pinpoint any specific reason behind the revival of foreign demand.
But some others said that despite a local political mess, they may have found some clue to future share market outlook and were back in the arena.
“The current lower levels, the talk of higher corporate earnings and good payouts are the chief motivating factors behind the current run-up”, some others said.
Forward counter: A virtual price flare-up in the share of MCB on GDR-linked support highlighted the trading on this counter, which rose by about Rs23 followed by Pakistan Oilfields, OGDC, National Bank, D.G. Khan and Lucky Cement and some others.—Muhammad Aslam