Stocks resume upward drive as buying in PTCL intensifies
By Our Staff Reporter
KARACHI, Jan 26: A massive activity of 226m shares in PTCL featured the Wednesday's stock market as foreign investors tried to grab as much stock as they could at the current levels.
Eight foreign buyers are in the line and are trying to increase their shareholding in it before the last date of submitting Expressions of Interest (EoIs) on Jan 28, but it is pretty difficult to name any one of them. Its 10-rupee share is now quoted around Rs60, showing a net rise of Rs20 since the race to have a bigger stake in it began a couple of weeks earlier.
After taking a brief technical pause overnight, stocks resumed their upward drive on heavy fresh buying in the leading base shares under the lead of PTCL and OGDC. KSE 100-share index ended with a clipped gain of 16.98 points at 6,904.56.
The market's initial uppish leaning was well-reflected in the KSE 100-share index, which added another 61.00 points to the overnight total and demonstrated in more than one ways that the next target of 7,000 may now be not that far off.
It, however, appeared Tuesday's repeat performance as the index could not sustain the early rise as leading bears fought back and halted its upward march to its next target owing to selling in OGDC and Nishat Mills.
Earlier it touched its session's peak level at 6,956.50, short of 44 points from the crucial level and that may possibly be covered before the week is out, analysts said "Index's heavy weight, PTCL, was back in the arena and absorbed the bear onslaught after turning out a massive single-session volume of 226m shares on strong foreign buying".
News from Balochistan are not too encouraging despite resumption of reconciliation talks with the leading Baloch leaders, brokers said adding "the tense situation could have a negative fallout on the market's current bullish stance amid reports of a possible army action".
But some others predict investors seem to be well aware of the developing situation in Balochistan and would only take hasty retreat if foreign buyers tried to liquidate their holdings in a panic.
Corporate news both from Fauji Fertilizer Bin Qasim and Nishat Mills were on the higher side of the analyst predictions and reinforced investor perception about the higher payouts.
Textile shares led the market advance, rising sharply under the lead of Fazal Textiles, Indus Dyeing, Nishat Chunian, Faisal Spinning, and Quetta Textiles, up by Rs7 to Rs11 followed by Pakistan Cables, Lakson Tobacco, Shell Pakistan and International Industries, which posted gains ranging gains from Rs11 to Rs21.25.
AKD Securities, which has risen sharply during the last couple of weeks, came in for active selling and fell by Rs33.35 followed by Shafiq Textiles, Clariant Pakistan, Colgate Pakistan and some others, off Rs7.45 to Rs13.
Trading volume showed a modest contraction at 645m shares from the previous 666m shares but gainers held a comfortable lead over the losers at 197 to 178, with 47 shares holding on to the last levels.
PTCL topped the list of most actives, up by Rs2.55 at Rs61.40 on 226m shares followed by OGDC, lower 55 paisa at Rs81.75 on 88m shares, Nishat Mills, off Rs5.80 at Rs110.60 on 60m shares and Hub-Power higher by 50 paisa at Rs33.50 on 54m shares.
Other actives included National Bank, firm by 25 paisa on 34m shares, Sui Southern Gas, off 70 paisa on 26m shares, ICI Pakistan, sharply higher by Rs4.40 on 21m shares, Fauji Fertilizer Bin Qasim, lower 45 paisa on 15m shares, MCB, off Rs1.65 on 12m shares and D.G.Khan Cement, easy 60 paisa on 10m shares.
FORWARD COUNTER: PTCL also led the list of most actives on this counter, up by Rs2.30 at Rs62.40 on 35m shares followed by PPL, easy 80 paisa owing to problems at its gas purification plant in Sui and Nishat Mills, off Rs5.83 at Rs110.88 on 11m shares. February settlements were also actively traded.
DEFAULTER COS: Active trading was witnessed on this counter under the lead of Crescent Standard Bank, lower 20 paisa at Rs15 on 1.729m shares, followed by Zahoor Cotton, sharply higher by Rs1.15 at Rs3.90 on 0.323m shares and Pangrio Sugar, higher by 90 paisa at Rs6 on 0.320m shares. Some others including Unity Modaraba and Lafayette Industries were also actively traded.
DIVIDEND: Clariant Pakistan, final 75 per cent, interim of 55 per cent already paid, Packages, cash 85 per cent, right shares 47 per cent, Gharibwal Cement 366 per cent, Fauji Fertilizer Bin Qasim, nil.
