KARACHI, June 17: Stocks on Tuesday resumed their upward drive as investors were back in the market encouraged by the president’s US visit and its allied financial benefits and made modest covering purchases in most of the second-liners, notably the cement sector.
But there were no sign of an aggressive buying on any of the counters as investors were terribly selective and purchased most of the secondary issues having potential of capital appreciation in the sessions to come.
The KSE 100-share index appears to be heading to set new record but did race toward its next target of 3,300 points and passed through a modest technical correction. Analysts say it is now well within its reach during the president’s US visit.
They said the US may not open the floodgate of foreign aid or a massive debt waiver of billion of dollars, speculators know how to use such high level visits to get financial gains.
After moving within a narrow groove of 15 points, it finally finished around 3,271.78, up 11.69 points and demonstrated that a formidable section of investors is not inclined to benefit from the current strength of the market and held on to their positions rather than taking profits.
Bulk of the support again remained confined to the low-priced second liners and leading base shares were generally neglected, which restricted the corresponding rise in the index.
The interesting feature is that there is no single-session big jump in the value of index indicating investors are treading cautiously beyond the 3,200 level and wanted to cover the distant up to 3,300 by inches rather than a one giant step as it had been doing during the last six months.
“An increase of 800 points or over 100 per cent just in six months is a spectacular performance for a third world (Karachi) bourse,” brokers said adding the “significant feature is that this feat was achieved in the backdrop of political standoff between the contenders of power.”
“The new chart level is now not an elusive goal,” analysts said. “President’s forthcoming US visit could give it the needed push during the next couple of sessions.”
The question is, however, being debated what after the breach of 8th successive barrier beyond 2,500 points during the last six month, notably during the last two months.
Banking, energy, cement on the perception of construction boom owing to incentives in the budget for housing, fertilizer and textile sectors remained in active demand and led the market advance but most of the blue chips, including PSO, Hub-Power and some others were neglected.
Plus dominated the list, major gainers being Berger Paints, Dewan Khalid Textiles, Shell Gas, Crescent Steel, EFU Life, Arif Habib Securities, Pakistan Oilfields, Pakistan Services and Javed Omer, up Rs3 to Rs20.
Umer Fabrics, Premium Textiles, Dadex Eternit, Ismail Industries, and Otsuka Pakistan followed by, higher by Rs2 to Rs2.90.
Prominent losers were led by 4th ICP, Island Textiles, Bannu Woollen, Premier Sugar, Shahtaj Sugar, Colgate Pakistan and Unilever Pakistan, which fell by Rs2.10 to Rs9.75. Siemens Pakistan suffered a fresh sharp decline of Rs13.10 on renewed stray selling.
Trading volume was maintained at the overnight level of 322m shares as advancing shares expanded their lead over the losing ones at 236 to 139, with 58 shares holding on to the last levels.
The most active list was topped by D.G. Khan Cement, firm 10 paisa at Rs22.75 on 49m shares followed by FFC-Jordan Fertilizer steady by five paisa at Rs13.85 on 33m shares, Lucky Cement, sharply higher by Rs1.45 at Rs17.15 on 28m shares, Pakistan Oilfields, up Rs5.35 at Rs214.85 on 25m shares and Maple Leaf Cement, higher by Rs1.50 at Rs12.70 on 21m shares.
Other actives were led by Dewan Salman, higher by 35 paisa on 19m shares, PSO, modestly higher on 14m shares, National Bank, firm 60 paisa on 10m shares and Bosicor Pakistan, up 30 paisa on 7m shares.
FORWARD COUNTER: PSO led the list of actives, higher by Rs2.15 at Rs220.55 on 6m shares, followed by FFC-Jordan Fertilizer, steady by 10 paisa at Rs13.95 on 4m shares, PTCL, lower five paisa at Rs27.35 on 3m shares Sui Northern Gas, easy 25 paisa at Rs34.90 also on 3m shares and Hub-Power, lower five paisa at Rs35.90 on 2m shares.
DEFAULTER COMPANIES: Mixed conditions prevailed on this counter as active among them showed erratic movements, Quice Foods rose by 25 paisa at Rs1.90 on 53,500 shares, while Medi Glass, suffered a fractional decline of 10 paisa at Rs2.90 on 34,000 shares. S.S.Oils on the other hand was traded higher by 50 paisa at Rs5.75 on 21,500 shares. All others were modestly traded.
