Stocks rise by 310 points on COT financing reports
By Our Staff Reporter
KARACHI, April 15: Stocks on Friday staged a broad rally for the third session in a row on fresh heavy buying triggered by reports that COT financing in some specific scrips may be allowed to forestall further outflow of funds from the market. The KSE 100-share index posted a fresh sharp gain of 310.07 points or 4.30 per cent at 7,512.91 as compared to 7,202.84 a day earlier, reflecting that it has resumed its upward drive towards its lost glory of 10,000-point level.
Heavy short-covering in PTCL initiated the snap rally followed by energy shares, notably PSO, Pakistan Petroleum, and some others.
The opening itself was fairly promising despite weekend considerations amid optimism that some relief may be on the cards for the massively battered Carry-over Trade (COT). A delegation of the KSE is due to meet the chairman of the Securities and Exchange Commission of Pakistan (SECP) in Islamabad by the next week to hold talks on the issue.
Analysts said the switchover of COT (badla) with margin financing earlier had caused a massive outflow of liquidity from the market and the consequent steep decline both in the index and the leading base shares led by the energy sector.
“The snap weekend smart rally gave a pleasant surprise to many leading analysts”, one broker said but “hoped that the next week could witness a flurry of fresh buystops if the SECP accepts the selective demands of the KSE”.
The market is expected to resume its recovery possibly by the next week as the follow-up support is around aiming both at capital gains and recoup losses, he said.
It is interesting to note that the bulk of the support again remained confined to the low-priced scrips, having potential of capital gains but market leaders also supported the rally.
Plus signs dominated the list under the lead of AKD Securities, Sitara Chemicals, Arif Habib Securities, PPL, Javed Omer, PSO, Dawood Hercules, PPL and Shell Pakistan, which posted gains ranging from Rs10 to Rs25.95, the largest rise being in Shell ahead of its board meeting next week.
Losers were led by Pakistan Oilfields, Gatron Industries, United Sugar, and IGI, which fell by Rs4.85 to Rs12, while others marked down modestly.
Trading volume rose to 344m shares from the previous 279m shares despite the fact that a sizable number of brokers and day traders remained busy in watching the Pakistan-India one day cricket match. Gainers outpaced losers by 188 to 63, with 30 shares holding on the last levels.
PTCL topped the list of most actives, sharply higher by Rs3.40 at Rs63.40 on 109m shares followed by Fauji Fertilizer, firm by Re1 at Rs32.35on 49m shares, Bank of Punjab, up by Rs3.85 at Rs85.75 on 18m shares, D.G.Khan Cement, steady by 80 paisa at Rs66.60 on 17m shares, and Sui Northern Gas, higher by Rs4.05 at Rs58.55 on 17m shares.
Other actives were led by Pakistan Oilfields, off Rs7.40 on 16m shares, Pakistan Petroleum, higher by Rs10.95 on 13m shares, PSO, up by Rs10 on 12m shares, National Bank, higher by Rs7.40 on 11m shares and Pak PTA, firm by 25 paisa on 11m shares.
FORWARD COUNTER: OGDC swept back into activity after having received massive battering during the last three weeks and recover Rs7.25 at Rs104 on 14m shares followed by PPL, higher by Rs11.80 at Rs194.40 on 12m shares, and Fauji Fertilizer Bin Qasim, up by Rs1.15 at Rs32.95 on 10m shares.
Other actives were led by PTCL, higher by Rs3 at Rs63.60 on 10m shares and Kapco, off 80 paisa at Rs52.80 on 6m shares. Others were modestly traded but on the higher side.
DEFAULTING COS: Crescent Standard Bank again came in for active support and rose by 85 paisa at Rs18.25 on 0.169m shares. Others lacked normal trading interest owing partly to weekend considerations.
