Index gains 22 points amid heavy covering purchases
By Our Staff Reporter
KARACHI, Jan 28: Stocks on Monday showed fresh widespread gains as institutional traders made fresh heavy covering purchases in some of the pivotals under the lead of PSO followed by reports of its early sell-off. The KSE 100-share index rose by 22.44 points or 1.47 percent at 1,549.21.
News of the sell-off of PSO appears to have added new element for speculative bargain-hunting and if the Privatization Commission strictly adheres to it schedule, it could give the needed push to the tired bulls, thinking of profit-taking, to make fresh commitments.
“It could well be a big sell-off in the trading history of the KSE,” stock analysts at the W.E. Financial claim, adding “massively capitalized and holding POL market share of 75 per cent, including an annual sales of about $2 billion, PSO is capable of taking the entire market to a new index level”.
In good old days, its 10-rupee share was quoted as higher as Rs400, with record dividend and bonus shares above 100 per cent each year. In the recent past it has fallen below Rs100 owing to decline in selling prices of oil products.
The KSE 100-share index added a fresh smart rise of 22.44 points at 1,549.21 despite massive foreign selling in Hubco as other leading base shares finished further higher under the lead of PTCL and PSO.
“Reports that a groundwork to privatize oil marketing giant, Pakistan State Oil has been completed and it could go for sell-off shortly buoyed investors,” stock analysts at the Moosani Securities said, adding “no one is willing to miss it at the prevailing rate on the perception that its share value could rise to any highs as the date of sell-off draws near”.
For the last several sessions it has been under press both in the ready and forward sections and has dropped as low as Rs93. But Monday’s strong support pushed it share value above the Rs100 level at Rs101.20, up Rs7.05 over the weekend close.
PTCL also played a supporting role and maintained its upward drive as a section of investors purchased it an PSO after liquidating long positions in Hub-Power.
Apart from encouraging corporate news, reports from the foreign aid front were more stimulating as investors were not inclined to entertain bearish ideas at least for the near-term.
“The market has at last found a path, which could lead investors to the targeted goal backed by perceptions of a robust economy and boost in the industrial production,” says a leading broker.
On the dividend front, a cash dividend of 35 per cent by Aventis Pharma for the year ended Dec 31, 2001 seems to have fallen below the market expectations as was reflected by a sharp decline of Rs2.45 in its share value at Rs48.05. International Industries, announced an interim of 15 per cent.
Energy shares led the market advance under the lead of PSO, Pakistan Oilfields and Shell Pakistan, which rose by Rs4.90 to 7.25. Other good gainers were led by BOC Pakistan, Dawood Hercules, Engro Chemical, Century Paper, Cherat Papers and Lever Brothers rising by Rs1.40 to Rs11.
But the large rise of Rs15 was noted in Wyeth Pakistan, which maintained its upward drive for the fourth session and has rise by Rs45.
Losers were led by Security Bank, Bata Pakistan, Ishaq Textiles, Gul Ahmed Textiles and 7th ICP Mutual Funds, which suffered fall ranging from one rupee to Rs1.90.
The interesting feature was that broader market performed well as the range of stocks, which came in for trading rose further. Out of the 245 actives, 151 shares rose, 56 fell, with 38 holding on to the last levels.
Trading volume was maintained on the higher side, bulk of which was confined to Hub-Power, off 40 paisa at Rs22.50 on 96m shares followed by PTCL, up 15 paisa at Rs17.25 on 38m shares, PSO, sharply higher by Rs7.05 at Rs101.20 on 14m shares, Engro Chemical, higher by Rs1.25 at Rs63.25 on 11m shares, Sui Northern firm by 20 paisa at Rs11.70 on 8m shares, and D.G. Khan Cement, higher Rs1.15 at Rs10.70 on 5m shares.
Other actives were led by Dewan Salman, up 35 paisa on 5.664m shares, FFC-Jordan Fertiliser, firm 10 paisa on 5.543m shares, ICI Pakistan, up 95 paisa on 4.951m shares and MCB, steady by 30 paisa on 3.087m shares.
FUTURE CONTRACTS: Barring Hub-Power, which suffered a decline of 35 paisa in sympathy with its ready shares on strong selling, all other shares ended higher under the lead of Engro Chemical and PSO, which rose by Rs1.15 and Rs7.10 at Rs64.15 and Rs102.05 on 0.316m and 1m shares, respectively. The price flare-up in PSO was equivalent to three emergency clearing owing to limit-gain.
PTCL was up 17 paisa at Rs17.42 on 1.928m shares, while others were modestly traded. The notable feature was that the matured January settlements were run-off of the board and February contracts assumed the role of ruling deliveries.
DEFAULTER COMPANIES: Shares of three companies came in for trading under the lead of National Modaraba, up 15 paisa at Rs0.75 on 2,500 shares followed by Automotive Battery and Gammon Pakistan, unchanged at Rs4.50 on 1,500 shares and off Rs1.40 at Rs12.50 on 500 shares.
NATIONAL BANK: Its share attracted active support at the weekend fall and managed to finish higher by five paisa at Rs14.60 after hitting the day’s best bid at Rs14.80 on half a million shares.
