KARACHI, Dec 21: The KSE 100-share index on Tuesday maintained its upward drive, steadily closing up to its next target of 5,900 on the strength of active short-covering in the leading base shares.
It posted a fresh rise of 21.32 points at 5,874.19.
After several lean years, textile sector assumed the role of a trend-setter on active follow-up support followed by reports of higher cash payout and bonus shares by some of the leading companies during the next couple of sessions.
Stocks, therefore, finished with an extended gain across a broad front as investors were not inclined to take even an overdue technical breather, and ignored the market's terribly overbought position.
Although there is a perceptible slow-down in the KSE 100-share index towards its new chart point of 6,000, it continues to rise progressively apparently to hit its immediate target of 5,900 before reaching the coveted level.
It ended with a fresh gain of 21.28 points as compared to 5,852.87 a day earlier, reflecting the strength of OGDC and PPL, having about 35 points weight in it. Year-end moping operations, both by the banks and the financial institutions, are at their peak, analysts said adding "speculative forces and bargain-hunters closely followed them keeping the market in a good shape despite heavy financial risks."
There could be more than one reasons behind the market's current sustained run-up but the important factor is that no one is inclined to miss the rising market and is out to ride the bandwagon.
Unlike the previous sessions, textile shares led the market advance as their annual board meetings for the year ended Sept 30, are now overdue. Some of them have already announced well above market cash divided and bonus shares, while others are expected to follow up.
A cash dividend of 25 per cent plus bonus shares of an identical amount by the Sana Industries, one of the leading textile shares indicates that some other big ones could follow suite, brokers said.
However, no one could deny the fact that free float from the carryover market or rolling of positions from the matured December settlements to the newcomer January contacts could take their toll in any session but how far is not clear, they said.
Nishat Mills, Blessed Textiles, Gadoon Textiles, Faisal Spinning, Arif Habib Securities, Umer Fabrics, Pak-Suzuki Motors, Siemens Pakistan, Clover Pakistan, Shezan International, AKD Securities, Island Textiles and Bhanero Textiles, which posted gains ranging from Rs4 to Rs19.70, were leading among the gainers.
Losers were led by Pakistan Engineering, Atlas Honda, EFU General Insurance, Zulfiqar Industries, Lakson Tobacco, Gatron Industries, and Wyeth Pakistan, off Rs3.5 to Rs15. Trading volume rose to 461m shares from the previous 278m shares as gainers held a strong lead over the losers at 211 to 173, with 57 shares holding on to the last levels.
Fauji Fertilizer Bin Qasim again topped the list of actives on reports of higher interim earnings and rose by 80 paisa at Rs29.50 on 97m shares followed by OGDC, up 50 paisa at Rs67.90 on 56m shares, Fauji Cement, higher by 50 paisa at Rs16.35 on 43m shares, Sui Northern Gas, off Rs1.40 at Rs60.30 on 38m shares, MCB, higher one rupee at Rs57.15 on 37m shares and Nishat Mills, sharply higher by Rs5.35 at Rs78 on 23m shares.
Other active included Askari Bank, easy five paisa on 20m shares, DG Khan Cement, up 35 paisa on 18m shares, National Bank, firm 10 paisa on 17m shares, Bank of Punjab, up 25 paisa also on 17m shares and PTCL, steady by five paisa on 10m shares.
FORWARD COUNTER: Nishat Mills remained in strong demand and rose further higher by Rs5.30 at Rs76 on 23m shares followed by PPL, off 69 paisa at Rs129.30 on 17m shares, Fauji Fertilizer Bin Qasim, easy 16 paisa at Rs29.56 on 15m shares and OGDC, higher by 45 paisa at Rs67.80 on 8m shares.
DEFAULTER COS: Crescent-Standard Bank again topped the list of active, unchanged at Rs12.50 on 1,754m shares followed by Ashraf Textiles, higher Rs1.35 at Rs8.50 on 0.119m shares and Suzuki Motorcycles, up Rs1.60 at Rs23.10 on 0.115m shares.
DIVIDEND: Union Bank, right shares at the rate of 9.8 per cent, Haseeb Waqas Sugar and Zahoor Textiles, nil.
BOARD MEETINGS: Allawasya Textiles, Maqbool Textiles, and Landmark Textiles, on Dec 24, Shams Textiles, Suraj Cotton and Mahmood Textiles on Dec 27.
