KARACHI, July 8: Leading shares on Thursday came in for fresh covering purchases on reports of higher corporate earnings but the broader market stayed weak owing to selling by the sundry speculators.
The market seems to be passing through a consolidation phase and once it is over it may pave the way for a big new account turnaround, brokers said. The KSE 100-share index on the other hand maintained its upward drive on the strength of active buying in the leading base shares and predictions of a fresh snap bull-run and finished with an extended gain of 14.42 points.
It finally ended around 5,423.74 as compared to 5,409.32 a day earlier as PTCL, ICI Pakistan and OGDC remained in strong demand at the current levels. Although leading shares posted fresh fractional gains as bulls and bears remained locked in price war in them, investors have found new safe havens in the shape of Bank of Punjab and ICI Pakistan, which have now assumed the role of trend setters on the strength of their earnings.
Most analysts are now eyeing the index level of 6,000 within the next two or three months after the Finance Minister Shaukat Aziz takes over as prime minister. "They apparently base there perception on the weightage of Pakistan Petroleum as together with OGDC and PTCL, they could push it to any highs," they said.
The current persistent rise, of course after consolidation, reflects that the "leading bulls" have already set this coveted target for themselves to be achieved and that may not be too ambitious in the changed political scenario, they predict.
"The goal may not be elusive but whether or not it will be matched by a general price flare-up is a question being debated by the leading brokers," they said. Most of the overvalued shares had already reached their saturation point and may not have the potential to rise further and base shares alone may not be in a position to support the "inspired speculative run-up".
Although leading financial institutions are still to make their new account debut, sundry speculators and day traders are active buyers on those counters, which ensure capital gains.
Losing shares again dominated the list but most of the losses were modest. Pak-Suzuki Motors, Shezan International, Merit Packaging, Quetta Textiles and Treet Corporation were exceptions, which suffered fall ranging from Rs3 to Rs4.
The largest decline was recorded in Atlas Honda, Unilever Pakistan and Aventis, which fell by Rs7.50 to Rs13.25. Leading gainers on the other hand were led by Jahangir Siddiqui Bank, Dreamworld, Shell Pakistan, Packages and Javed Omer, up by Rs7.50 to Rs10.65, but the largest gain was netted by Wyeth Pakistan, which posted a fresh rise of Rs39 owing to the shortage of floating stock.
BOC Pakistan, Rupali Bank, followed by reports of joint venture with Arif Habib Securities, Pakistan Refinery, Abbott Lab, Pak Elektron and Lakson Tobacco, up by Rs2 to Rs4.
Trading volume showed a sharp rise at 276m shares from the previous 200m shares but losers again maintained a fair lead over the gainers at 175 to 130, with 44 shares holding on to the last levels.
PTCL topped the list of most actives, up 35 at Rs43.50 on 39m shares followed by OGDC, firm by 10 paisa at Rs67.05 on 30m shares, Bank of Punjab, higher by Rs2.70 at Rs59.50 on 29m shares, ICI Pakistan, up Rs1.10 at Rs93.95 on 23m shares and Maple Leaf Cement, firm by 60 paisa at Rs1.45 on 22m shares.
Other actives were led by ICP SEMF, higher by Rs1.55 on 12m shares, Nishat Mills, lower 30 paisa on 10m shares, Fauji Bin Qasim, steady by 15 paisa also on 10m shares, DG Khan Cement up 40 paisa on 9m shares and National Bank, up 35 paisa on 7m shares.
FORWARD COUNTER: Pakistan Petroleum came in for fresh selling and ended sharply lower by Rs4.35 at Rs109.65 on 14m shares followed by PTCL, up 25 paisa on 5m shares, OGDC, easy 10 paisa at Rs67.15 on 4m shares.
Hub-Power suffered a fresh modest fall of 15 paisa at Rs31.80, while Maple leaf Cement, rose by 65 paisa at Rs41.55 on 1m shares.
DEFAULTER COS: Trading on this counter failed to pick up in the absence of strong demand. Crescent Standard Bank was the only exception, which came in for modest buying and rose fractionally at Rs9.90 on 0.124m shares.
