KARACHI, Jan 10: The KSE 100-share index on Monday maintained its upward drive as a section of upcountry punters are not inclined to take even a technical breather and pushed it well above the barrier of 6,400 and close to its next target of 6,500.
The net rise was a massive 165.24 points or 2.6 per cent at 6,484.14, adding Rs41bn to the market capital at Rs1,798.355bn. "The market appears to be in the tight grip of a selective force of speculators", says Faisal Abbas, a stock analyst at a leading brokerage house "the current price flare-up is speculative and not based on any positive basic fundamentals".
Some other leading analysts are also awaiting the return of sanity to the market after the speculative bubble is blown up but when nobody is sure about it, they said.
After taking a modest technical breather at the fag-end of the last week, the KSE 100-share index confidently breached through the barrier of 6,400, signalling that it could hit the next target of 7,000 well before the analyst predictions.
Apart from speculative buying, an attractive bait of privatization of some mega state-owned units including PTCL and PSO could well be one of the immediate stimulants but genuine investors should work under their own perceptions, some brokers said.
Analysts and leading stock brokers could give a dozen of reasons for the market's unabated rise to new highs after having broken all previous records both in terms of individual turnover and price flare-up, the basic fact is "investors both genuine and bargain-hunters are in the market and minting money in each session beyond their expectations".
"It is virtually a windfall, having no parallel in investment history of stock trading", says a leading investor "we are not fools as money goes where it is safe and appreciates".
No one could deny the fact that corporate earnings are on the higher side and banks have enough idle liquidity to invest in profitable modes of investment, some analysts said adding in the absence of an inadequate demand from the industrial sector idle funds must find their way into equity market.
At one stage, the index was up by 183 points or 3.5 per cent and demonstrated its limit could be sky after having thoroughly beaten the bears on more than one counts on massive foreign buying in PTCL and OGDC.
As the date of its partial dis investment of PTCL is drawing nearer, foreign strategic investors are out to corner its floating stock with the genuine investors or the speculative forces, brokers said "in the process it may be heading toward its previous peak level of Rs64", they predict.
Bank shares, notably National Bank, MCB and Bank of Punjab followed them as they have the potential to rise further on the strength of their earnings and investment capacity. Textile and energy shares followed them rising sharply higher.
Plus signs dominated the list under the lead of Pakistan Services, Shell Pakistan, AKD Securities, Arif Habib Securities, and Parke-Davis, up by Rs10.30 to Rs28.30. Other good gainers were led by PICIC, Noon Sugar, Millat Tractors, BOC Pakistan, Fauji Cement, and Bhanero Textiles, up by Rs7.15 to Rs10.
Losers were led by Wyeth Pakistan, off Rs50 followed by EFU General and Life Insurance, National Foods, Lakson Tobacco, and Atlas Honda, off Rs5.30 to Rs11.95. Trading volume fell from the weekend figure of 808m shares to 766m shares amid a briskly traded session but gainers forced a strong lead over the losers at 276 to 142, with 55 shares holding on to the last levels.
PTCL was again massively traded, sharply higher by Rs3.45 at Rs49.60 on 192m shares followed by PSO, up Rs10 at Rs315 on 66m shares, OGDC, firm by 90 paisa at Rs73.50 on 44m shares, National Bank, higher by Rs6.55 at Rs97 on 44m shares and D.G.Khan Cement, up by Rs1.55 at Rs56.95 on 39m shares.
Other actives included MCB, up by Rs3.20 on 35m shares, Bank of Punjab, higher by Rs1.45 on 33m shares, PICIC Growth Fund, firm by Rs1.85 on 28m shares, Fauji Fertilizer, higher by Rs7.65 on 26m shares and Lucky Cement, up by Rs155 on 25m shares.
FORWARD COUNTER: PTCL also led the list of actives on this counter, up by Rs3.45 at Rs49.70 on 31m shares followed by PPL, higher 55 paisa at Rs143 on 24m shares, PSO, sharply higher by Rs15.75 at Rs315.75 on 13m shares, OGDC, firm by 75 paisa at Rs73 on 7m shares and Pakistan Oilfields, up by Rs1.90 at Rs248.90 on 6m shares.
DEFAULTER COS: Crescent-Standard Bank again attracted strong support and was quoted higher by Rs1.45 at Rs16.70 on 1.924m shares followed by Mukhtar Textiles, higher by Re1 at Rs10 on 0.359m shares and Sahrish Textiles, higher by 65 paisa at Rs6.90 on 0.122m shares.
