KARACHI, Oct 2: Stocks on Thursday rose further across a broad front for the third session in a row as investors continued to build-up long positions on selected counters at the lower levels.
The rally was broad-based and largely powered by active buying in the energy, auto, banking and cement shares, which raced towards their pre-reaction levels.
The KSE 100-share index recovered another 111.12 points and was quoted at 4,178.94, signalling that its march toward the pre-reaction level of 4,600 could be further intensified during the coming sessions. The early week loss of 176 points was fully recovered yesterday.
The market capital rose well above the Rs900bn mark at Rs907.632 as compared to Rs894.999bn, up Rs12.633bn.
The US pat on the prime minister’s back on the functioning of democracy here was also taken by investors as positive sign, allaying rumours about the fate of current political set up, analysts said.
There was no trace of the last two sessions relative sluggishness after the trading resumed as both institutional traders and leading retailers covered positions almost on all the counters at the lower levels, giving the market needed direction.
“Apart from a massive privatization programme for the current month, which stipulates disinvestment of 215 million shares of Oil and Gas Development Corporation Ltd (OGDCL), one of the massively capitalized shares after the PTCL, at an attractively low price of Rs32 per share, sell-off of 3.5 per cent shares of the National Bank are also on the cards”, analysts said.
Anticipating a fresh price flare-up after the bargain-hunting, investors have started to take up positions on the sectors where chances of capital appreciation is certain.
The sell-off of PSO is also billed during the current month but analysts speculate its date could be extended to December in a bid to give a breathing space to investors who will bid for OGDCL and National Bank shares.
All the pivotals as well as leading second-liners participated in the rally although turnover figure did not match the buying offers as sellers kept to the sidelines anticipating further rise in prices.
Plus signs dominated the list, major gainers being Pakistan Oilfields and Treet Corporation, up by Rs19.30 and Rs20, respectively, followed by Fazal Textiles, Gatron Industries, National Refinery, Pak-Suzuki Motors, Glaxo-SKF, Al-Ghazi Tractors and Millat Tractors, up by Rs8 to Rs12.50.
Losses on the other hand were mostly fractional barring sharp setback in Dewan Textiles, Sana Industries, Packages, Dawood Hercules, Arif Habib Securities, Rafhan Maize, off Rs2.60 to Rs15.65 but the largest fall of Rs28.05 was recorded in Javed Omer.
Trading volume, therefore, showed a modest increase at 319m shares from the previous 232m shares but gainers forced a strong lead over the losers at 207
to 97, with 35 shares holding on to the last levels.
PTCL again led the list of actives, up by 45 paisa at Rs38.75 on 47.104m shares followed by PSO, higher by 95 paisa at Rs289 on 34m shares, FFC-Jordan Fertilizer, up 50 paisa at Rs18 on 26m shares, D.G.Khan Cement, sharply higher by Rs2.65 at Rs38.15 on 19m shares and Fauji Cement, up by 60 paisa at Rs10.75 on 18m shares.
Others actives were led by Pakistan Oilfields, higher by Rs19.30 on 15m shares, Lucky Cement, up Rs1.10 on 14m shares, Sui Northern Gas, higher by Rs2.25 also on 14m shares, National Bank, firm by Re1 on 12m shares and Dewan Salman, higher by Rs1.25 on 11m shares.
FORWARD COUNTER: Hub-Power came in for strong support and rose by 90 paisa at Rs37.55 on 16m shares, PSO, higher by 95 paisa at Rs290.05 on 12m shares, PTCL, up by 35 paisa at Rs38.70 on 5m shares. FFC-Jordan Fertiliser and Pak PTA followed them, up by 25 and 95 paisa respectively at Rs16.15 and Rs11.65 on 3m and 1.404m shares.
DEFAULTER COMPANIES: Trading activity on this counter remained insipid in the absence of strong support from any quarter. Prices showed fractional change though mostly on the higher side. Biafo Industries was the only share, which attracted active support and rose by 45 paisa at Rs7.15 on 0.116m shares.
BOARD MEETINGS: Amin Fabrics, on Oct 4, Suhail Jute, on Oct 6, Al-Khair Gadoon, Chakwal Cement, Nina Industries, on Oct 7, Fidelity Leasing Modaraba, Diamond Industries, Shafi Chemicals, on Oct 8, Rafhan Maize Products, on Oct 9 and Packages, on Oct 23.
