KARACHI, April 7: The KSE 100-share index on Wednesday maintained its sustained upward drive and finally broke through the barrier of 5,300 amid predictions that its next chart point could be 6,000 well before the budget.
It was very rare in the KSE history that two barriers were broken in three sessions, the first 5,200 on Monday and the second 5,300 on Wednesday as investors were not inclined to miss the rising market. The net rise being of 150 points or about four per cent and an addition of Rs37 billion in the market capital at Rs1,419bn.
It was again the OGDC day as all roads again led to it and for good reasons too, closely followed by the D.G.Khan Cement, gas shares and auto sector after official statement that status quo may be maintained in regard to local industry.
An idea of buying flurry may well be had from the fact that the turnover figure soared to its second career-best level of 908m shares, the previous single-session all-time peak level being 962m shares hit last year on August 8.
The 5,200-point barrier was broken on Monday and the 5,300 today, signalling that higher badla rates could hardly be a deterrent in the market backed by more than one basic positive fundamental factors.
It finally finished around 5,310.04 after at one stage hitting the day's peak level of 5,346, up by 43.16 points as compared to 5,266.88 a day earlier, reflecting the strength of the OGDC, which again turned out another massive volume.
The index level of 6,000 possibly before the budget appears to be not that ambitious now as the inclusion of the OGDC in the KSE has altogether changed its entire weightage, some brokers said adding as "no amount of selling could its share value sharply lower, the inherent strength of the index will remain intact".
Despite higher carryover rates and volume, both the speculative traders and the financial institutions are not inclined to say no to the rising market, telling market's overbought position may be an old adage.
"There may not be a big shakeout but I speculate there could be a massive correction if institutional traders decide a partial pullout from the carryover market", fears Faisal Abbas a leading stock analyst.
But some others say if one look on the driving forces behind the market's current meteoric rise to new highs there is no possibility of a reversal until fundamentals change.
"No one is inclined to disinvest his stake in the share business aided by some positive basic factors including lower bank rates, an ambitious privatization programme, higher corporate earnings and the coming budget, which is expected to be more investor-friendly", they said.
Plus signs were strewn all-around, most of them being big, leading gainers being HinoPak Motors after the announcement of cash dividend of 85 per cent, Packages, Clariant Pakistan, IGI Insurance, Arif Habib Securities and Javed Omer, which posted gains ranging from Rs7.25 to Rs40.65.
Adamjee Insurance, Cherat Cement, Aventis, Bata Pakistan, National Foods, Shezan International, and Siemens Pakistan followed them, up by Rs5 to Rs7. Losers were led by Attock Refinery, Ghani Glass, Zulfiqar Industries, Sapphire Fibre, Fazal Textiles and Unilever Pakistan, off Rs2.25 to Rs17.
Trading volume swelled to 908m shares from the previous 755m shares as gainers forced a strong lead over the losers at 266 to 136, with 53 shares holding on to the last levels.
OGDC again topped the list of most actives, up by 35 paisa at Rs 63.55 on 124m shares followed by D.G.Khan Cement, higher by Rs1.20 at Rs55.80 on 108m shares, Sui Southern Gas, lower 20 paisa at Rs37.25 on 76m shares, Sui Northern Gas, higher by Rs1.05 at Rs70.10 on 54m shares and PIAC, firm by five paisa at Rs26.60 on 49m shares.
They were followed by FF Bin Qasim, up by 50 paisa on 49m shares, Hub-Power, higher by 55 paisa on 44m shares, PTCL, up by 20 paisa on 37m shares, National Bank, firm 35 paisa on 32m shares and Fauji Cement, unchanged on 31m shares.
FORWARD COUNTER: Sui Northern Gas again came in for active support and rose by Rs1.10 at Rs70.20 on 13m shares followed by FF Bin Qasim, up by 40 paisa at Rs23.20 on 6m shares, Hub-Power, up 70 paisa at Rs37.85 also on 6m shares, PTCL, firm by 10 paisa at Rs41.25 on 4m shares and Dewan Salman, firm 15 paisa at Rs27.10 on 3m shares.
Both Engro Chemical and Fauji Fertilizers rose further by Rs1.05 and Rs2.25 at Rs121 and Rs104 on modest turnover.
DEFAULTER COS: Standard Bank again topped the list of actives, off 40 paisa at Rs9.35 on 0.759m shares, Biafo Industries, higher by 70 paisa at Rs9.35 on 0.366m shares, and Suzuki Motorcycles, higher by Rs1.25 at Rs31 on 0.294m shares. Some others were also actively traded.
DIVIDEND: HinoPak Motors, cash 85 per cent, Platinum Insurance, right shares 150 per cent, American Life Insurance and PIAC, both nil.
BOARD MEETINGS: NDLC-IFIC Bank, on April 14, Equity Modaraba, on April 15, Union Bank, on April 17, Security Leasing Corporation on April 20.
