KARACHI, April 19: The KSE 100-share index on Monday maintained its winning streak and breached through the psychological barrier of 5,600 with a a wide margin boosted by heavy buying in OGDC amid rumours of an imminent launch of its GDRs.
It settled around 5,620.66, up 38.38 points after having hit the day's best level of 5,660 as all roads led to OGDC on market talk that its management plans to issue GDRs (Global Depository Receipts) shortly.
The market capital also swelled above the Rs1,500bn mark at Rs1,511.985bn from the previous week's Rs1,489.458bn, showing a hefty rise of Rs22.527bn, with OGDC being the major contributor.
"The market situation is now fraught with high risks at this stage," most of the leading analysts fear "but some others think otherwise basing their future assessment on some positive basic factors."
"People have money but not many alternative gainful investment avenues and no one among them is inclined to miss the boom for allied financial benefits," they said adding "the saturation point may already have reached."
Massive buying in OGDC followed by reports that its management is launching GDRs on the world markets featured the yesterday's stock market where all other pivotals were also actively traded.
The breach of the psychological barrier came just within no time after the trading resumed as bulls were not inclined to have an overview of the market's highly overbought position and higher carryover volume and rates and pushed the index above their pre-determined level of 5,600.
It finally finished around 5,620.66, up 38.38 points as compared to last week's 5,582.28 boosted by sharp increase in prices of OGDC and PTCL, which together hold a weightage of 38 per cent in it.
"Reports that the OGDC plans to issue Global Depository Receipts (GDRs) at $1.25 to $1.5 per share on the world markets to attract foreign buyers appears to have given a fresh boost to stock trading," analysts said.
They said investors hope a favourable response to the OGDC GDRs from the foreign funds on the pattern of PTCL, whose management also launched GDRs some years back.
The current price flare-up in OGDC is expected to be sustained for the next couple of sessions at least until its rupee value touched the rumoured GDR rate, says a leading broker.
But some other analysts predict a big shakeout alone on technical grounds. The stage will reach when bulls may not be able to hold the price line on the strength of free-float from the carryover market but "it is anybody's guess."
However, no one could deny the fact that the reaction is overdue as the market has extended its run-up beyond its holding capacity but when it will show up is still unclear as investors are a bit enthused by prediction of eight per cent growth and an ambitious privatization programme before the budget.
"There is no credible evidence of a mighty technical correction," says a stock broker," adding "prices just could move either-way in case the current run-up is contained by the bears."
Energy and cement shares were again actively sought after all through the session despite their inflated levels as reports of higher interim did not allow investors to sit on the sidelines.
Prominent gainers were led by Shell Gas, Parke-Davis, Nestle MilkPak, Arif Habib Securities, Wyeth Pakistan and Javed Omer, which posted gains ranging from Rs17 to Rs45.35. They were followed by Jahangir Siddiqui & Co, Burewala Textiles, Attock Refinery, Berger Paints, National Foods, Century Papers, Noon Sugar, Al-Abbas Sugar, Packages and EFU Life, up by Rs4.50 to Rs10.
Losers were led by Dawood Hercules, Fazal Textiles, Adamjee Insurance, Atlas Honda, International Industries, Atlas Battery and Unilever Pakistan, off by Rs5 to Rs45. Trading volume fell from the all-time peak level of 1.122m shares to 821.662m shares as losers forced a mild lead over the gainers at 203 to 194, with 50 shares holding on to the last levels.
OGDC topped the list of most actives, up Rs1.80 at Rs69.70 after touching at one stage the day's peak of Rs70.75 on 120m shares followed by Fauji Cement, higher 45 paisa at Rs18.25 on 102m shares, Lucky Cement, firm by 90 paisa at Rs44.20 on 67m shares, FF Bin Qasim, up Rs1.10 at Rs23.20 on 67m shares and PTCL, firm by 10 paisa at Rs44.85 on 59m shares.
Other actives were led by Hub-Power, steady by 10 paisa on 51m shares, DG Khan Cement, off Rs1.75 on 44m shares, Maple Leaf Cement, up 40 paisa on 41m shares, PIAC, lower 50 paisa on 26m shares and Dewan Salman, firm 15 paisa on 25m shares.
FORWARD COUNTER: Speculative issues on the forward counter came in for active selling at the inflated levels and suffered fall ranging from Rs1.70 to Rs2 for PSO, Nishat Mills and MCB, at Rs285.25, Rs55.40 and Rs60 respectively. ICI Pakistan on the other hand posted a sharp rise of Rs4.70 at Rs90.40.
Fauji Bin Qasim Fertilizer and PTCL led the list of actives, up 80 paisa and lower 15 paisa at Rs23.30 and Rs44.85 respectively on 8m and 7m shares followed by Pak PTA, Sui Northern Gas and Hub-Power, which accounted for 6m, 6m and 5m shares respectively, with gains ranging from 10 paisa to 50 paisa, largest rise of Rs1.50 being in Pak PTA at Rs18.85.
DEFAULTER COS: Biafo Industries came in for active support and rose by 30 paisa at Rs11.60 on 0.436m shares followed by Standard Bank, lower five paisa at Rs9.25 on 0.423m shares and Quice Foods, higher by 35 paisa at Rs4.20 on 0.288m shares.
DIVIDEND: Security Investment Bank, interim bonus shares at the rate of 10 per cent, Trust Leasing, right shares of 20 per cent.
