KARACHI, April 16: Stocks on Tuesday maintained an uppish leaning as leading shares posted fresh good gains on active follow-up support aided by positive news on the budget front and some important board meetings and market talk of higher dividend.
After having broken the circuit breaker more than once, net rise being Rs.7.65 and Rs.7 in both the ready and the forward counters respectively, PSO provided the session’s special feature and took away all other energy shares along with it to the plus column.
The speculative buying was partly related to its early privatization and partly to stable local prices and fall in the world crude oil rates.
“The bulk of the buying appears to be budget-related as investors are after those stocks, which could be the beneficiaries of the tax concessions widely rumoured in the new budget,” stock analysts at the AHRA said.
But some others were worried over the late profit-selling, which could well mean the index level of 1,900 may not be hit during the current run-up.
The KSE 100-share index posted a fresh rise of 7 points at 1,890.74 as compared to 1,883.74 a day earlier, reflecting the strength of the leading base shares.
The opening was fairly promising in the backdrop of the finance minister’s statement of an investor-friendly national budget due next month and his promise of fresh tax concessions for the trade and industry but as a technical correction was overdue in an oversold market, prices eased on late profit-selling.
“I don’t think that the current run-up is overdone,” stock analyst at Moosani Securities predict “the market could take a breather after breaching through the barrier of 1,900 points.”
Moreover, board meetings of leading companies from the fertilizer and telecommunication sector are due shortly, which could evoke a good bit of speculative interest in their shares and in turn on the broader market, he says.
The fears of law and order situation associated with the referendum in the wake of strong opposition by the leading political parties are gradually fading in the shadow of president’s public meetings, stock analysts at the W.E. Financials said adding the public response could lead to a positive vote of confidence.
Big gainers were led by Fateh Textiles, PSO and Nestle MilkPak, which posted gains ranging from Rs.16.00, 7.85,and 6.00 followed by Attock Refinery and Javed Omer, up by Rs.3.65 and 3.85.
Ayesha Textiles, Quetta Textiles, Pakistan Oilfields, Shell Pakistan, Abbott Lab, Dawood Hercules and Wyeth Pakistan also rose by Rs.1.95 to 3.10.
Losers were led by Lever Brothers, Gatron Industries, Premier Sugar, Fazal Textiles and Pak Reinsurance, falling by Rs.2.00 to 15.00.
PICIC Commercial Bank, Bestway Cement, Pakistan Tobacco, Crescent Steel, Siemens Pakistan and Ruby Textiles also suffered fall to the extent of one rupee to Rs.1.80.
Trading volume rose to 177m shares from the previous 111m shares but losers cut short the strong lead held by the gainers for the last couple of sessions at 133 to 182, with 57 shares holding on to the last levels.
The most active list was topped by Hub-Power, up 30 paisa at Rs.24.80 on 36m shares followed by PTCL, firm by five paisa at Rs.19.10 on 35m shares, PSO, higher by Rs.7.85 at Rs.165.10 on 29m shares, FFC-Jordan Fertilizer, steady by five paisa at Rs.7.65 on 13m shares and Dewan Salman, up 25 paisa at Rs.18.40 on 9m shares.
FUTURE CONTRACTS: PSO came in for strong speculative support and finished higher by Rs.7 as bulls outwitted the bears after claiming successive clearing as the rise was well above the ceiling rate of Rs.1.50. An idea of either-way activity may well be had from the fact that a record turnover of 2.528m shares was noted at such a high rate of Rs.165, up Rs.7, equivalent to five successive clearings.
Hub-Power rose by 30 paisa at Rs.24.85 on 3.546m shares followed by PTCL, firm by 10 paisa at Rs.19.20 on 1.516m shares. Others were modestly traded.
DEFAULTER COMPANIES: For the second session in a row, active trading was witnessed on this counter as investors opted to purchase undervalued shares for capital appreciation. Shares of 17 companies attracted good support and generally rose under the lead of Allied Motors, up 10 paisa at Rs.6 on 23,500 shares, followed by National Modaraba, also higher by the same amount at Rs.0.95 on 11,000 shares and Qayyum Textiles, up 15 paisa at Rs.0.80 on 7,500 shares.
DIVIDEND: Reckitt Benckiser Pakistan, final dividend at the rate of 25 per cent.
BOARD MEETINGS: Al-Meezan Mutual Fund, Dadex Eternit on April 18, Allied Motors, First Imrooz Modaraba, Berger Paints, Ibrahim Leasing, on April 19, Soneri Bank, Crescent Investment Bank, Lawrencepur Woollen, Golden Arrow, Burewala Textiles, Buxly Paints, Dawood Hercules, Trust Investment Bank on April 20, Honda Atlas, First Punjab Modaraba, First Allied Bank Modaraba, Pakistan Refinery on April 22, Sui Southern, Cherat Cement, on April 23, Aventis Pharma, Bata Pakistan on April 24, Tri-Pack Films, Askari Leasing on April 26.
