Stocks gain 39 points, volume rises to 512m shares
By Our Staff Reporter
KARACHI, Dec 9: The KSE 100-share index on Thursday settled well above the crucial level of 5,700 and analysts predict it could well be the takeoff point for its next target of 6,000 points.
The price flare-up was widespread and covered the entire list, some of the leading shares facing shortage of floating stocks rose sharply and so did textile, energy and some others on heavy buying.
It ended with a fresh rise of 39.85 points at 5,738.49 as compared with 5,698.64 a day earlier as leading base shares remained on the hunting list of the leading bulls. Trading volume soared to year's new record at 512m shares reflecting that portfolio adjustments are at their peak.
But some others said being in a highly overbought position and massive investment on the carryover market, there could be some big tactical reversal any time on active selling.
Friday's session could be very important for its future direction as bears are on the board, although they failed to find some gaps in the stronghold of the bulls, they said.
"The market has risen beyond objective conditions and so swiftly that there are doubts in some quarters whether the breach of successive barriers is genuine or artificial", says a leading stock analyst.
Some others said positive fall-out of President Musharraf's foreign visit, notably to the US apart, the per share earnings at 10.5 per cent seems to be an attractive bait behind the market's current run-up. And added to it predictions of higher dividend by the textile sector.
Some of the hereto neglected shares are virtually racing towards their new chart points under the lead of Nishat Mills, which again rose sharply higher by Rs4.35 and the KSE high-ups have to apply circuit breaker to forestall further increase its share value.
While the leading volume leaders, notably OGDC, PPL, PTCL and some others were relegated to the secondary positions, in their place some others assumed their role under the lead of Nishat Mills.
A couple of years back its 10-rupee share was stable around Rs120 and the current run-up reflects it is edging to regain the lost glory as a blue chip on the strength of higher exports.
Advancing shares maintained strong lead over the losing ones, major gainers being Nishat Chunian, Faisal Spinning, Gatron Industries, Al-Abbas Sugar, Shell Pakistan, Hino Pak Motors, Feroz sons Lab, Rafhan Best foods Berger Paints, and BOC Pakistan, which posted gains ranging from Rs4.35 to Rs12.60.
But the largest rise of Rs40.50, Rs45 and Rs67.50 were noted in Rafhan Maize, Wyeth Pakistan and Parke-Davis owing to shortage of floating stock. Losers were led by Siemens Pakistan and Treet Corporation, off Rs9.90 and Rs12.35 followed by Gul Ahmed Textiles, Pakistan Engineering, National Foods, Noon Pakistan and some others, off Rs2 to Rs3.50.
Trading volume rose to year's peak level of 512.262m shares as gainers maintained a strong lead over the losers at 266 to 134, with 60 shares holding on to the last levels.
Nishat Mills topped the list of most actives, sharply higher by Rs4.35 at Rs62.85 on 63m shares followed by Fauji Fertilizer, firm by 35 paisa at Rs25.55 on 51.057m shares, MCB, higher by Rs1.20 at Rs55.10 on 45m shares, D.G.Khan Cement, up by 75 paisa at Rs53.25 on 37m shares and PTCL, steady by 10 paisa at Rs41.45 on 32m shares.
Other actives included Sui Northern Gas, up by 35 paisa on 31m shares, Dewan Salman, higher 75 paisa on 27m shares, PICIC Growth Fund, firm by 95 paisa on 26m shares, PSO, up by Rs2.20 on 20m shares and PIAC, steady by 15 paisa on 17m shares.
FORWARD COUNTER: Fauji Fertilizer Bin Qasim led the list of actives, up by 50 paisa at Rs25.65 on 19m shares followed by PPL, off 45 paisa at Rs123 on 14m shares, Nishat Mills, sharply higher by Rs4.20 on 8m shares, OGDC, up by 35 paisa at Rs66.15 also on 8m shares and MCB, higher by Rs1.25 at Rs55.20 on 6m shares. PSO, MCB, Fauji Fertilizer and some others were also actively traded on the higher side amid active deals.
DEFAULTER COS: S.S.Oil remained in strong demand and rose further higher by Rs1.50 at Rs19.80 on 0.690m shares followed by Crescent-Standard Bank, lower 10 paisa at Rs10.95 on 0.423m shares and Suzuki Motorcycles, sharply higher by Rs1.50 at Rs19.60 on 0.197m shares.
DIVIDEND: Bhanero Textiles, cash 50 per cent, Haji Muhammad Ismail, 3.50 per cent, Shazad Textiles, Shaheen Cotton, Taha Spinning and Kashmir Edibles, all nil.
