Stocks close on firm note

The KSE 100-share index closed with an extended gain of 88.83 points at 14,449.98 points as compared to 14,361.15 a day earlier as all the leading base shares remained in active demand and tended further higher.

The early week sell-off on the oil,bank and cement sectors was the chief factor behind the renewed run-up as both local institutional traders and foreign investors covered positions in them at the lower levels enabling the index to resume its upward march,they said.

In market parlance,the weekend rally always leads to a robust opening when trading resumes next week as investors did not care for negative news during the intervening two closures perhaps on some “positive news,” some others said.

“The market has already undergone through technical correction during the last three sessions”said an analyst adding and as “bulls are not inclined to unload long positions at this stage and are building up positions on selected counters the run-up was extended.”

But some others said the next week could be very crucial for the future direction of the market as the supreme court is expected to give its ruling on the eligibility of the president as a presidential candidate for the second term.

“The corporate strength of the market would be tested by the middle of the next when some of the important events will unfold themseleve,” they said “if absorb any shock the index level of 15,000 points may not be an elusive goal then.”

Leading gainers were led by Fazal Textiles and Siemens Pakistan, up by Rs.18.70 and 36.00, while National Refinery and Pakistan Resource Co, fell by Rs.20.85 and 21.00.