Stock market gains 56 points

KARACHI - The benchmark KSE 100-share index surged by 56.29 points to close at 12,415.35 points ahead of Security & Exchange Commission of Pakistan Chairmans expected visit to KSE on Monday to review the approval of margin trading system. The index had closed at 12,359.06 points on Thursday.
According to the daily market report, total turnover reached 131.72 million shares while the KSE capitalization stood at Rs3, 355.63 billion or $39.24 billion. The overall ready market value accounted for Rs5.12 billion or $59.89 million.
The KSE 30-index closed higher at 12,095.36 points, showing increase of 54.20-0.45 points over the last closing. KSE future volume was recorded at 6.13 million shares, valued at Rs843.05 million while spread was at 4.11 per cent.
While the wider market participants awaited confirmation of leverage introduction, cautious accumulation in the main board stocks allowed the benchmark to continue the gaining spree, after an initial setback, turnover however failed to match the gains, activity by holding companies along with resident participants however did provide various trading opportunities to the market-men, low volumes however stayed the alarming factor, said Hasnain Asghar Ali, an analyst at Aziz Fida Husein & Co.
He said main board oil and gas exploration, fertilizer and banking stocks led the gains while LOTPTA continued to stay the main volume provider, range bound activity and stagnation. However, continued to disallow aggressive follow-up support, leverage waves however kept the corporate participants away from the selling window, thereby allowing the high priced stocks to register substantial gains.
According to the analyst, official update on leverage along with time-line and mechanism should therefore be awaited mainly in the stocks already trading at saturated levels, while stocks having consistent dividend yields can be looked for accumulation, ongoing economic reforms may add the temptation of discounts at the local bourse after the introduction of leverage product, thus stocks likely to benefit from the leverage by witnessing improvement in valuations can be looked for short term trades, while sell stays the call in high price stocks along with those struggling in the high interest rate, rising input cost and low, local and international demand.
Upcoming banking results are likely to continue to witness post result sell-off in case the expectations of over optimistic earnings and high stocks dividends are not met, caution therefore stays the call in the front line stocks of the sector, while official visit of SECP commissioner is likely to provide an updates stance of leverage, he predicted.