KARACHI, Jan 3: Stocks on Friday tended further higher across a broad front as investors were not inclined to miss a rising market aided by reports of higher dividend by the leading energy and fertilizer shares.
The market sentiment in part was also influenced bullishly owing to adviser to the prime minister on finance Shaukat Aziz’s visit to the KSE on Saturday and a market talk of some stimulating announcement by him on the credible performance on the country’s bourses and how to sustain the run-up.
Hub-Power was again massively traded on fresh heavy buying followed by clarification by the management about the rumour of levy of tax on it, although finished with clipped gain.
The KSE 100-share index ended with a fresh gain of 34.28 points at 2,744.82 as compared to 2,710.54 a day earlier, reflecting the strength of the leading base shares.
It may take a couple of sessions more to hit its new chart point of 2,800, indications are that its journey to the next target of 3,000 index level is now pretty sure. Much has changed during the last about two months on the financial front, notably 1.5 per cent cut in the discount rate by the central bank and identical lowering of interest rates by the banking system.
“Huge cash amounts both from the banks and financial institutions are seeking gainful investment avenues and the share business appears to be on the top of all”, analysts said.
What has added more credibility to the share business was recent two per cent cut in profit rates on all the official saving schemes.
Energy and fertilizer sector led the market advance on expectations of higher dividend for the year ended Dec 31, 2002 followed by reports of higher sales.
But the chief factor behind the market’s run-up despite high badla business and badla rates at Rs10 billion and 24.6 per cent respectively was the perception of handsome capital gains within a shortest possible time.
Investor mood is well-reflected in a strong weekend rally, which in normal market parlance is a lean day as jobbers and day traders take profits at the available margins. But now there are more buyers than sellers and the consequent price flare-up and some of the neglected shares including Thal Jute and Bannu Woollen attracted strong support and rose sharply.
Plus signs dominated the list under the lead of Thal Jute, Noon Sugar, National Refinery, Pakistan Refinery, PSO, International Industries, Clariant Pakistan, Fauji Fertilizer, Cherat Papers, Unilever Pakistan, Gillette Pakistan and Central Insurance, up by Rs2 to Rs5, largest rise of Rs11.40 was noted in Pakistan Oilfields.
Losers were led by Siemens Pakistan and Wyeth Pakistan, off Rs9 and Rs26 followed by Sitara Chemical, Sarhad Cigarette, Pakistan Reinsurance and Abbott Lab, off Rs1.50 to Rs5. Others fell fractionally.
Trading volume rose to 468m shares from the previous 349m shares as gainers forced a strong lead over the losers at 198 to 109, with 50 shares holding on to the last levels.
The most active list was topped by Hub-Power, up by 85 paisa at Rs41.45 on 119m shares followed by PTCL, unchanged at Rs25.55 on 71m shares, KESC higher by 75 paisa at Rs5.70 on 51m shares, FFC-Jordan Fertilizer, up by 45 paisa at Rs10 on 40m shares, PSO, higher by Rs3.75 at Rs219.40 on 32m shares and ICI Pakistan, firm by five paisa at Rs57.65 on 18m shares.
Other actives were led by Pak PTA, up by 25 paisa on 26m shares, D.G.Khan Cement, higher by 45 paisa on 15m shares, Sui Northern, easy 25 paisa on 13m shares and Pakistan Oilfields, sharply higher by Rs11.40 also on 13m shares.
FORWARD COUNTER: Speculative issues on the forward counter also followed the lead of their counterparts in the ready section and rose amid active trading under the lead of Hub-Power, up by Re1 at Rs41.85 on 22m shares.
Other actives were led by PTCL, firm by 10 paisa at Rs26 on 9m shares, PSO, higher by Rs3.45 at Rs220.95 on 8m shares, FFC-Jordan Fertilizer, which attained its face value after ruling below its face value for the last couple of years.
Pak PTA rose by 35 paisa at Rs7.95 on 3m shares, while Fauji Fertilizer rose sharply by Rs3 at Rs78.70 on 2m shares.
DEFAULTER COMPANIES: Most of the current actives on this counter came in for stray selling and fell fractionally, notable among them being Sunshine Cotton, easy 15 paisa at Rs.0.30 on 22,000 shares, followed by Quice Foods, lower 10 paisa at Rs1.40 on 12,500 shares and Medi Glass, up five paisa at Rs0.80 on 9,500 shares. Others were traded modestly.
DIVIDEND: Towellers Ltd, cash 10 per cent for the year ended Sept 30, 2002.
