Low-priced shares’ trading lifts index by 15 points
By Our Staff Reporter
KARACHI, July 21: Stocks remained in a bullish frame of mind on Monday as after a relatively slow start follow-up support figured prominently on the low-priced sectors, lifting the KSE 100-share index by 15 points at 3,766.70.
The earlier slowdown was attributed to some rethinking on the new trade policy after Saturday’s positive business reaction and the mid-session resumption of normal activity was the outcome of its positive impact on the trade and industry, notably the textile sector, one of the major recipients of the incentives.
Low-priced shares, having the potential of capital appreciation remained centre of activity as some of cement shares finished close to their circuit-breakers on heavy speculative buying.
The KSE 100-share index managed to put on a fresh gain of 14.90 points at 3,766.70 as compared to previous 3,751.71 points on the strength of the PTCL, but trading volume suffered a modest contraction.
The new trade policy 2003-04 seeking sustainable broad export base aims at adding untraditional items to the existing export list and finding new markets for value-added products.
But its major emphasis is on to meet the challenges of post-WTO regime beyond 2004 and has provided solid base for both the industry and the export houses to fully prepare themselves for the event, analysts said.
“The new trade policy appears to be a national reform package, which encompasses a wide perspective of the country’s infrastructure and restructuring of the trade bodies,” they added.
However, its immediate impact on stock trading was not visible as investors were taking overall view and the sectors, which will benefit in the long run, they said.
But indications are that investors will be back during the next couple of sessions and are expected to resume their normal daily buying and selling operations.
“There is also a loud whispering in the market that a massive correction is overdue despite the fact that easy supply of money has a check on rollover rates,” says leading broker, adding “higher badla rates could work on both sides of the market.”
Bulk of the support remained confined to the low-priced shares, notably in the cement sector, which ensure higher capital gains on short-term basis. Textiles sector, which will be the chief beneficiary of the incentives given in the new trade policy also performed well and so did some others in the synthetic groups.
Plus signs dominated the list, major gainers being AKD Securities, Pakistan Resource Co, Bolan Castings, Burewala Textiles, Abbott Lab, Reckitt and Benckiser, Unilever Pakistan, IGI Insurance, Island Textiles and Park-Davis, which posted gains ranging from Rs3.10 to Rs10.
Losers were led by PSO, National Refinery, Sapphire Fibres, Honda Atlas Cars, Shell Pakistan, Security Papers, International Industries, Lakson Tobacco, Javed Omer, Packages, off Rs2.65 to Rs4.90, but the largest decline of Rs13.85 was recorded in Nestle MilkPak.
In the absence of leading investors, trading volume shrank to 478m shares from the previous 494m shares, but gainers maintained a strong lead over the losers at 221 to 149, with 47 shares holding on to the last levels.
PTCL was actively traded, up 15 paisa at Rs31.55 on 38m shares followed by
PIAC, higher by Rs1.50 at Rs16.35 on 35m shares, the fresh buying was attributed to interim profit of Rs1.5bn, Chakwal Cement, up 60 paisa
at Rs6.15 also on 35m shares, Sui Northern Gas, higher by Rs1.15 at Rs35.65 on 34m
shares and Maple Leaf Cement, higher by Rs1.50 at Rs33m shares.
Other actives were led by FFC-Jordan Fertilizer, off 40 paisa on 28m shares, Dewan Salman, up 75 paisa on 23m shares, KESC, up 35 paisa also on 23m shares, Lucky Cement, steady by 40 paisa on 21m shares and Pak PTA, higher 35 paisa also on 21m shares.
FORWARD COUNTER: PSO came in for active selling at the weekend higher levels and fell by Rs3.70 at Rs251 on 5m shares followed by FFC-Jordan Fertilizer, easy 65 paisa at Rs16.35 on 7m shares and PTCL, up five paisa at Rs31.55 on 6m shares.
Sui Northern Gas on the
other hand rose by Rs1.05 at Rs35.85 on 4m shares, while Hub-Power reacted to close lower by 30 paisa at Rs39.50 on 4m shares.
The notable feature was that trading also started in forward August settlements side by
side the maturing July contracts, which will rung off the board by the middle of the next week.
DEFAULTER COMPANIES: Fairly brisk trading was witnessed on this counter as investors played on both sides of the fence realizing profits.
Indus Polyester, led the list of actives, up 50 paisa at Rs4 on 0.532m shares followed by Unity Modaraba, unchanged at Rs2.10 on 0.186m shares, Suzuki Motorcycles, sharply higher by Rs1.50 at Rs11.90 on 0.167m shares.
