100-index adds 216 points, crosses 9000 barrier again

KARACHI - The Karachi share market witnessed a healthy buying on Wednesday and the KSE 100-index increased by 216 points and closed at 9155 point.
The trading volume also increased to 133 million shares against 130 million last day.
The KSE 30-index advanced by 268 points to peg at 9,683.
Despite uncertain political and law and order situation in Pakistan, the foreign investors were seen taking interest in share market, which gave boost to fresh buying.
Fresh buying by investors pushed the stock prices at the share market, which opened in the green zone and remained positive throughout the session, as investors took positions mainly in energy and banking stocks.
Out of total 400 actives, 258 stocks advanced, 126 stocks declined, while the value of remaining 16 stocks remained unchanged.
Highest volumes were witnessed in JS Company at 20.84 million closing at Rs32.66 with a gain of 97 paisa, followed by AH Securities at 8.91 million closing at Rs48.64 with a gain of Rs1.76, Pak.PTA at 7.24 million closing at Rs6.97 with a gain of 22 paisa, Azgard (Pref) Eight at 6.36 million closing at Rs10.30 with a loss of 35 paisa, and Adamjee Insurance at 4.61 million closing at Rs122.28 with a gain of RS5.82.
Market analysts are of the view that resistance can be witnessed at 9,300 level.
According to analysts, the foreign investors kept on buying the scrips despite the twin bomb blasts in Lahore and Rawalpindi and carried out new buying worth $3.4 million.
Analyst Muzzammil Aslam said the political stability would come in handy to restore the trust of local investors on the market, adding that in view of interest of foreign investors, a road show for them is being convened in New York.
He hoped that such road shows would help aggrandise the volume of the investment in the national share market.
Hasnain Asghar Ali at Aziz Fidahusein said calm on law and order front and easing up of political issues rising trend in international oil prices did invite support in the main board stocks. Activity was duly followed by short covering mainly against the float offered in previous sessions wherein the index under went massive erosion.
The points attributed to the recent political development were regained in two sessions thus allowing a technical recovery, expensive valuations at the local bourse, due to unavailability of ready board leverage failed to invite follow-up support. High impact cost continues to restrict trading activities with emphasis on activities of off-shore participants stagnation re-emerged around midday, benchmark however managed decent green numbers. Thanks to low volume price inflation in index heavy weights, some from banking sector and some from oil and gas exploration, while speculative activity in group specific stocks kept the excitement alive. Ability of the index to sustain momentum, will re-invite short term activity, mainly in low price stocks besides investment companies, short term trades may therefore be initiated in the mentioned categories.
While stocks having the tendency of making technical moves can also be looked for short term trades with identified stop losses, to avoid getting stuck.
With triggers limited upside is likely to stay confined, availability of user friendly ready board leverage product can still do the magic, by re-inviting turnover thereby offering depth to the market besides allowing price discovery, as certainly the introduction will increase the strength of the local participants, even in the scenario where negativity has over shadowed the rare view of optimism.