Index hits new peak on heavy buying in energy scrips
By Our Staff Reporter
KARACHI, April 6: Heavy buying in the energy sector featured the trading on the stock market on Tuesday where alternate bouts of buying and selling figured prominently in one of the briskly traded sessions during the current year.
As was predicted by some leading analysts the mid-session witnessed a lot of badla-related selling but after passing through a technical correction, stocks managed to finish well above the day's lows on late short-covering at the dips.
The KSE 100-share index ended with an extended gain of 38.58 points at 5,266.88 as compared to previous 5,228.30 points as leading index shares, notably OGDC closed with a smart gain of Rs1.60 at Rs63.20. Market capital crossed the barrier of Rs1,400bn (Rs1.4 trillion) at Rs1,407.935bn as compared to Rs1,396.154bn a day earlier, up by Rs11.781bn.
Trading volume soared to six-month high of 755m shares after Sui Southern and OGDC turned "hot buys" for obvious reasons followed by other current favourites including PIAC in anticipating of sell-off date.
Bulk of the fresh share float originated from the carryover market where both the volume and the rates have soared to 496m shares and 14.76 per cent from the previous week's 11 per cent.
"The badla phobia (carryover market) has its negative impact on the early trading but bulls were on the look out to cover positions at the dips and that lifted the index to new highs", brokers said.
For the last couple of sessions, gas utilities, both Sui Southern and Sui Northern, notably the former have been in strong demand partly because reports of higher earnings and partly to their partial disinvestment under the government's privatization programme.
"But on Tuesday it was billed one of the top volume leaders on massive covering purchases in the backdrop of Supreme Court verdict, allowing the company claiming a decent holding to participate in the company's elections", says a leading stock analyst.
Indications are that the market is expected to seek further higher levels in the coming sessions as the market's overnight position has been partially corrected after the "great float", although there could be more selling on some other counters barring the energy one.
Leading gainers were led by Rafhan Bestfoods and Unilever Pakistan, up by Rs20 and Rs50 respectively, followed by Dawood Cotton after the official approval of merger of Burewala, Gatron Industries and Lawrencepur Woollen with it, Sapphire Fibre, Sui Northern Gas, Cherat Cement, Pakistan Cables, Clariant Pakistan and ABAMCO Capital Fund, which posted gains ranging from Rs4 to Rs8.25.
Losers were led by Javed Omer, which suffered a fresh sharp decline ahead of its board meeting, off Rs28.55 followed by New Jubilee Insurance, Pakistan Oilfields, Attock Refinery, Packages, Tri-Pack Films, National Refinery, Treet Corporation, Shell Pakistan and HinoPak Motors, off Rs3.25 to Rs7.75.
Trading volume rose to 754.590m shares, up from the previous 625m shares but losers held a modest lead over the gainers at 198 to 182, with 53 shares holding on to the last levels.
The most active list was topped by Sui Southern Gas, higher by Rs2.60 at Rs37.45 on 112m shares followed by OGDC, up Rs1.60 at Rs63.20 on 103m shares, PIAC, firm by 70 paisa at Rs26.55 on 73m shares, D.G.Khan Cement, steady by 55 paisa at Rs54.60 on 62m shares, National Bank, firm by 10 paisa at Rs67.95 on 45m shares, Sui Northern Gas, sharply higher by Rs4.80 at Rs69.15 on 40m shares and PTCL, off 40 paisa at Rs40.90 on 36m shares.
Other actives were led by FF Bin Qasim Fertilizer, easy 15 paisa on 34m shares, Fauji Cement, easy 20 paisa on 25m shares and Japan Power, higher by 70 paisa on 20m shares.
FORWARD COUNTER: Sui Southern Gas also actively traded on the forward counter, higher by Rs4.80 on 10m shares followed by PTCL, lower 20 paisa at Rs41.15 on 9m shares, FF Bin Qasim Fertilizer, lower 15 paisa at Rs22.80 on 3m shares.
Hub-Power also fell by 35 paisa at Rs37.15 on 3m shares, Dewan Salman, up by 25 paisa at Rs26.95 on 2m shares and PSO, off Rs1.40 at Rs285.60 on a modest turnover.
DEFAULTER COS: Standard Bank again came in for strong support ahead of its board meeting, up by five paisa at Rs9.75 on 3.885m shares followed by Fidelity Bank, higher by 95 paisa at Rs11.20 on 1.428m shares and Suzuki Motorcycles, up Rs1.20 at Rs29.75 on 0.431m shares. Some others were also actively traded.
DIVIDEND: East-West Insurance, bonus shares at the rate of 10 per cent, Metropolitan Life Assurance and Karim Silk, nil.
BOARD MEETINGS: Standard Investment Bank, on April 7, Union Insurance Company, and Progressive Insurance, on April 8, B.R.R. International Modaraba, and Islamic Investment Bank, on April 9, Otsuka Pakistan, on April 19, Packages on April 21, Tri-Pack Films, on April 26.
