KARACHI, March 8: Stocks on Monday finished with an extended gain but well below the day's peak levels owing to profit-selling in some of the leading shares.
The KSE 100-share index rose further by 17.44 points at 4,917.87, pushing the market capital up by Rs8bn at Rs1,289.231bn.
The sentiment in part was influenced favourably by lower badla rates allowing investors to significantly expand their market operations, although their major thrust remained confined to most of the low-priced shares.
During the last week the badla rates remained in a single digit, averaging about six per cent and speculative investors were not that fool to miss the bait and they made extensive buying in most of the second-liners, analysts said.
Cement shares remained in focus partly owing to their lower rates and partly to reports of higher sales, notably to Afghanistan where the reconstruction work is well underway.
The KSE 100-share index posted a fresh rise of 17.46 points at 4,917.89 as compared to 4,900.43 at the last weekend as some of the leading base shares tended further higher.
"I think the index is inching up to its next target of 5,000 but after due consolidation", predicts a broker "its modest rise daily reflects that bulls are not inclined to go for the target just in one-go for obvious reasons". However, what after that is anybody's guess but if the market goes by the objective corporate scenario and the basic economic indicators, the future outlook appears more than optimistic, he adds.
A formidable section of leading investors is awaiting the outcome of proposed meeting of the high-ups of the automobile industry with the Prime Minister on the issue of import of second-hand cars and its impact on the local industry.
The auto shares have been under pressure since the announcement of permission to import reconditioned cars, which had assumed the role of trend-setters in the recent past followed by reports of higher sales and payouts.
Many good dividend announcements are still due both from the textile and sugar sectors and they could give the needed impetus to the current buying euphoria, some others said.
The important thing is that speculators did not opt for hasty selling and held on to their positions despite violence in some parts of the city as protest of murder of an MPA, they added.
Plus signs dominated the list under the lead of PICIC, Pakistan Refinery, Attock Refinery, Dawood Hercules, Abbott Lab and IGI Insurance, which posted gains ranging from Rs5 to Rs9.
Other good gainers were led by PICIC Bank, Adamjee Insurance, Thal Ltd, Ghandhara Diesel, Glaxo-Wellcome, Cherat Papers, National Foods and Arif Habib Securities, up by Rs3 to Rs16.
Losses on the other hand were fractional barring Bolan Castings, Atlas Battery, Packages, Unilever Pakistan, Ghani Glass, Pak-Suzuki Motors and Noon Sugar, which were marked down by Rs1.50 to 5.
Trading volume further rose to 333m shares from the previous 306m shares as gainers maintained a fair lead over the losers at 199 to 186, with 49 shares holding on to the last levels.
PTCL, topped the list of actives, up by 10 paisa at Rs39.85 on 52m shares followed by OGDC, higher by 70 paisa at Rs53.20, PIAC, easy 65 paisa at Rs25.05 on 22m shares, Fauji Cement, easy 10 paisa at Rs12.35 also on 22m shares and D.G.Khan Cement, lower 20 paisa at Rs47.40 on 19m shares.
Other actives were led by Dewan Salman, firm by 10 paisa on 14m shares, National Bank, up by 65 paisa on 13m shares, Bank of Punjab, higher by Rs1.15 on 11m shares, Adamjee Insurance, higher Rs4.65 on 10m shares and FF Bin Qasim, lower 40 paisa on 9m shares.
FORWARD COUNTER: PTCL also came in for active trading on the cleared list and rose by 10 paisa at Rs39.90 on 6m shares followed by FF Bin Qasim, lower 35 paisa at Rs19.80 on 4m shares, Hub-Power, unchanged at Rs37.35 on 3m shares, PSO, easy 60 paisa at Rs284.40 also on 3m shares and Dewan Salman, lower five paisa at Rs24.65 on 2m shares.
DEAULTER COS: Trading activity on this counter remained fairly active as buying interest spread to dozens more shares. However, alternate bouts of buying and selling were the hallmark of the trading and investors played on both sides of the fence on fractional gains.
Crescent Spinning led the list of actives, off 65 paisa at Rs5.10 on 0.399m shares followed by Indus Polyester, up by 40 paisa at Rs3.60 on 0.375m shares. Schon Modaraba, higher by 35 paisa at Rs1.55 on 0.357m shares and Islamic Bank, up by 90 paisa at Rs6.50 on 0.344m shares.
