KARACHI, March 25: The KSE 100-share index on Thursday broke the barrier of 5,100 points on heavy buying in the leading index shares aided by reports of the extension of a waiver of economic sanctions for another year by US for Pakistan's role in the current drive against terrorism.
The centre of attraction this time was PTCL, which has 20 per cent weightage in the index, which was massively traded exactly on the lines of OGDC during the last three sessions and for good reasons.
The index finally ended around 5,112.58 as compared to 5,045.49 a day earlier, up 67.09 points and demonstrated in more than one ways that the rise is based on positive basic factors not on speculative support. It emitted signals around the world that the local stocks now are an attractive bait for any foreign investor or asset management fund.
The market capital also added another Rs18bn to the overnight total and was quoted at a new high of Rs1,352bn. Morgan Stanley may take some more weeks to air it around the world in its composite index (MSCI) but may not now ignore it as the KSE market capital has already touched the high mark of $25 billion, the qualifying benchmark being $20 billion for foreign investors.
The fresh price flare-up appears to be essentially based on anticipatory buying by leading investors and institutional traders amid market talk of an imminent advent of foreign fund buying after the market capital has attained the required level of $20 billion.
"But what seems to be the chief inspiring factor behind the market's current meteoric rise is the US total support to Pakistan for its role against terrorism", analysts said.
The perception that the total US support could lead to investment in stocks by some of the leading American MNCs and asset management funds and in some other sectors did not allow local punters to sit on the sidelines, they added.
Energy, cement and auto shares again led the market advance followed by reports that their corporate earnings are on the higher side and most of them announced enhanced payouts. Fertilizer shares also rose on renewed buying after the increase in fertilizer prices for the new cotton season.
Leading gainers were led by Colgate Pakistan and Javed Omer, up by Rs10.50 and Rs22.90 followed by Jahangir Siddiqui Bank, Gatron Industries, HinoPak, Exide Pakistan, Abbott Lab, Aventis Pharma, National Refinery, Honda Atlas, and Adamjee Insurance, which posted gains ranging from Rs5 to Rs6.30.
Losers were led by Wyeth Pakistan, off another Rs50, followed by Atlas Honda, Atlas Battery, Shell Pakistan, Fazal Textiles, Central Insurance after the dividend announcement and Siemens Pakistan, lower by Rs4 to Rs11, the largest fall being in Siemens after Wyeth Pakistan.
Trading volume was maintained on the higher side, rising to 718m shares as compared to 671m shares a day earlier as the advancing shares maintained a strong lead over the losing ones at 226 to 156, with 62 holding to the last levels.
PTCL topped the list of most actives, relegating the OGDC into a third position after last three sessions of massive volumes, up by 85 paisa at Rs41.15 on 112m shares, Dewan Salman Fibre, higher by Rs1.20 at Rs27.15 on 83m shares, OGDC, lower 35 paisa at Rs58.70 on 60m shares, Fauji Cement, firm 35 paisa at Rs14.50 on 58m shares and National Bank, up by Rs2.70 at Rs61.70 on 47m shares.
Other actives were led by PIAC, higher by 75 paisa on 46m shares, FF Bin Qasim, firm by 40 paisa on 38m shares, Lucky Cement, steady by 25 paisa also on 37m shares, Nishat Mills, up by Rs1.30 on 27m shares and D.G.Khan Cement, easy five paisa on 20m shares.
FORWARD COUNTER: PTCL was also actively traded on the forward list, up by 79 paisa at Rs41.09 on 8m shares followed by Dewan Salman, higher by Rs1.15 at Rs26.85 on 3m shares, Pakistan PTA, firm by 34 paisa at Rs17.55 on 2m shares, Hub-Power and FF Bin Qasim, up by 18 and 55 paisa at Rs38.45 and Rs21.85, respectively, on 2m shares each.
Engro Chemical also came in for strong support and rose by Rs4.60 at Rs102.50 and so did some others including Ibrahim Fibre.
DEFAULTER COS: Standard Investment Bank came in for active support and rose by five paisa at Rs8.25 on 0.400m shares followed by Ashfaq Textiles, higher by Rs1.10 at Rs7.60 on 0.351m shares and Islamic Bank, easy by five paisa at Rs7.60 on 0.327m shares. Some others were also modestly traded.
DIVIDEND: Habib Insurance, cash 25 per cent, bonus shares in the ratio of three shares for every 10 held, Reliance Insurance, cash 10 per cent, bonus shares of an identical amount, Central Insurance, cash 40 per cent, bonus shares 10 per cent, Mukhtar Textiles, right shares at the rate of 45 per cent, Suzuki Motorcycles, nil.
BOARD MEETINGS: Apollo Textiles, on March 27, Pakistan Venture Capital, Glaxo-Smith Kline, KASB Bank, on March 29, Reckitt Benckiser Pakistan, Universal Insurance, New Jubilee Insurance, PIAC, Adamjee Insurance and Shaheen Insurance, on March 30.
