KARACHI, Oct 23: Trading volume on the stock market on Wednesday soared to 275m shares on strong buying aided by expectation of higher quarterly earnings by most of the leading shares, including some multinationals. The KSE 100-share index rose by another 26.78 points at 2,168.82.
The figure is billed as the highest so far under the newly introduced trading system known as “undisclosed system”, which does not specify the names of the buyers and the sellers of trades, eliminating the “herd culture” in stock trading.
“The current week is very crucial for the future direction of the market as quarterly board meetings of a dozen leading companies, including MNCs, are to be held by Oct 31,” stock analysts said, adding “a loud whispering about good interims by most of them continue to inspire strong speculative buying in them.”
The board meetings of PTCL, PIAC, Glaxo-Wellcome Pakistan, Sui Northern Gas, SK&F, Reckitt and Benckiser and some others are due before Oct 31.
The KSE 100-share index rose further by 26.78 points at 2,168.82 points, signalling it could take a technical breather after having hit its next target of 2,200 points. The market capitalization soared by 5.484bn at Rs491.605bn.
“The current sustained run-up reflects a major change in the investor perceptions,” analysts said, adding “the massive covering purchases are guided by positive market fundamentals rather than the political uncertainty.”
It is interesting to note the failure of leading parties so far to form a stable coalition government at the centre after intensive parleys did not curb the investors enthusiasm to build-up long positions on the counters where the chances of capital gains are more bright.
“I don’t rule out the possibility of strong fund buying on selected counters,” says a broker, adding “the steep increase in the volume reflects they are in the market in a big way and for good reasons too.”
This signals the end of post-election apprehensions of foreign investors but on what grounds, it is unclear, he adds.
Bulk of the support remained confined to PTCL, Hub-Power and PSO, which together accounted more than a half of the total volume as investors were not inclined to miss the Oct 31 deadline.
Pakistan Reinsurance Company and Grays of Cambridge were leading among the gainers, up Rs12 and Rs87.05, followed by Lakson Tobacco, Sapphire Fibre, Al-Ghazi Tractors, ICI Pakistan, Unilever Pakistan and Grays of Cambridge, which posted gains ranging from Rs3 to Rs12.
Losers were led by Pak-Suzuki Motors and Noon Pakistan, BOC Pakistan, 9th ICP, Siemens Pakistan and Recitt and Benckiser, off one rupee to Rs1.80.
Trading volume soared to 275m shares thanks to general buying in all the leading shares as compared to 134m shares a day earlier. Gainers maintained a fair lead over the losers at 183 to 107, with 57 shares holding on to the last levels.
PTCL topped the list of most actives, up five paisa at Rs20.25 on 48m shares followed by Hub-Power, steady by the same amount at Rs24.75 on 44m shares, PSO, up 60 paisa at Rs174.50 on 32m shares, National Bank, higher 75 paisa at Rs24.60 on 20m shares, Sui Northern Gas, up 45 paisa at Rs17.10 on 17m shares, Engro Chemical, higher by Rs1.20 at 67.65 on 12m shares and MCB, firm by 25 paisa at Rs29.95 on 10m shares.
Other actives were led by Nishat Mills, both in the ready and the forward counters, up Rs1.45 at Rs18.70 on 10m shares, ICI Pakistan, higher by Rs3.15 at Rs45.75 on 9m shares and Dewan Salman, firm by 15 paisa at Rs15.40 also on 9m shares.
FORWARD COUNTER: PSO again came in for strong support and ended further higher by 85 paisa at Rs174.20 on 15m shares and 6m shares in its November delivery.
Hub-Power followed it, easy by three paisa in both the settlements on 7.298m and 5.283m shares at 24.70 and 24.90, respectively. PTCL was quoted higher by 30 paisa at Rs20.55 on 5m shares in the ruling
contract.
DEFAULTER COMPANIES: Allied Motors came in for strong buying and rose by 75 paisa at Rs11.50 on 0.125m shares followed by Metropolitan Steel, higher 40 paisa at Rs8.90.
Quice Foods accounted for 18,000 shares, steady by 10 paisa at Rs1.80, while Custodian Modaraba, rose by Rs1.20 at Rs6.50 on 12,000 shares. Others were modestly traded.
DIVIDEND: Sitara Chemicals, cash 50 per cent; Mari Gas, nil; and Trust Leasing, bonus shares at 10 per cent.
BOARD MEETINGS: International Industries, Pakistan PTA, on Oct 24; Glaxo-Wellcome Pakistan, Smith Kline & French Standard Investment Bank, D.G. Khan Cement, Kohinoor Genertek, Fidelity Investment Bank, Balochistan Wheels, Japan Power, Berger Paints, Sui Northern Gas, Recitt Benckiser, on Oct 25; Islamic Investment Bank, WorldCall Multimedia, Shezan International, Lucky Cement, on Oct 26; Saudi Pak Commercial Bank, Allied Motors and Soneri Bank, Bosicor Pakistan, Grays of Cambridge Pakistan, PIAC, Dewan Salman, on Oct 28; Packages, Dawood Leasing, Punjab Modaraba on Oct 29; Pakistan Telecommunications Company Ltd on Oct 30; and Meezan Bank on Oct 31.
