KARACHI, May 5: Stocks on Thursday staged a snap rally on active buying in the low-priced oil shares aided apparently by positive developments on some unsettled issues of the Carry Over Trade and future contracts. The KSE 100-share index recovered another 199.50 points or 2.5 per cent at 7,098.22 as compared to 6,898.72, reflecting the strength of the leading base shares, notably PTCL, OGDC and Pakistan Petroleum.
The market capital was also quoted higher by Rs52.379bn at Rs2,002.698 billion as heavily-capitalized shares, notably PTCL and oil giants showed smart rise. A cash dividend of 22.5 per cent or Rs2.25 per share for the year ended March 31, 2005 by Honda Atlas Cars was well-received in the market as was reflected by an increase if Rs350 in its share value. It was, however, sharply lower from the previous year’s 42.5 per cent.
The recovery was widespread and engulfed all the sectors under the lead of those which have good dividend record and higher earning per share (EPS). Pakistan State Oil currently under disinvestment programme after eight bidders including one each from Kuwait, Dubai and Saudi Arabia have selected for the bid followed by Pakistan Oilfields, OGDC, and some others.
But the lead was again provided by the oil giant Pakistan Petroleum, which had dropped from Rs223 (face value Rs10) to Rs152 during the recent sell-off, which again proved itself a market leader.
Analysts said investors seem to have come out from the self-imposed exiles and actively participated in the rescue operations to put the market back on the rails.
“The prevailing lower levels of most of the blue chips and those having potential of capital gains lure investors back into the market and the consequent sustained run-up”, they said.
The worst still may not be over indications are that positive news about the fiscal steps in the new national budget and talk of tax concessions could reinforce the investor perception about a robust rally supported by market’s technical demands also being in a highly oversold position.
After several lean sessions, plus signs dominated the list under the lead of energy shares, notably National Refinery, PSO, Mari Gas, Pakistan Oilfield and Pakistan Petroleum, up by Rs7 to Rs8.50.
BOC Pakistan, Nestle MilkPak, Grays of Cambridge, Shell Pakistan, Millat Tractors, ICI Pakistan, Berger Paints, Grays of Cambridge, Atlas Honda and Siemens Pakistan on other counters posted gains ranging from Rs4 to Rs29.
Losses on the other hand were fractional barring Pakistan Hotels, ECOPak, Packages, Indus Dyeing and Valika Art Fabrics, off Rs2.45 to Rs15.10.
Trading volume rose to 242m shares from the overnight’s 117m shares as gainers forced a strong lead over the losers at 226 to 82, with 32 shares holding on to the last levels.
PTCL led the list of actives, up by Rs2.90 at Rs63.05 on 86m shares followed by OGDC, higher by Rs3.45 at Rs94.90 on 43m shares, PSO, sharply higher by Rs8.60 at Rs368 on 14m shares, Pakistan Petroleum, up by R9.90 at Rs168 on 13m shares, National Bank, firm Rs3.25 at Rs95.90 also on 12m shares and Pakistan Oilfields, up by Rs7.60 at Rs267 on 9m shares and MCB, higher by Rs3.30 at Rs75.50 on 7m shares.
Other actives were led by D.G.Khan Cement, up by Rs1.65 on 9m shares, Pak PTA, lower 20 paisa on 8m shares, and Fauji Fertilizer Bin Qasim, higher by 75 paisa on 5m shares.
FORWARD COUNTER: PTCL also remained in strong demand on this counter also, higher by Rs2.95 at Rs63.55 on 12m shares followed by PPL, up by Rs7.95 at Rs167 on 8m shares, and PSO, higher by Rs8.75 at Rs370.25 on 4m shares.
All other speculative issues also recovered from the recent lows and ended higher, leading among them being OGDC, up by Rs3.55 at Rs95.80 on 3m shares and Fauji Fertilizer Bin Qasim, higher by 70 paisa at Rs29.20 on 1m shares.
DEFAULTER COS: The counter lacked normal trading interest as leading investors switched to the ready section in an apparent effort to realize quick gains in a rising market. Price changes and turnover was light.
