KARACHI, Aug 2: Stocks on Tuesday shrugged off the recent hesitancy and staged a broad rally aided by strong institutional support amid hopes of a positive official decision on COT and margin financing. The sudden change in the market’s mood was well reflected in the KSE 100-share index, which recovered 129.48 points or 1.80 per cent at 7,324.80 points, adding Rs34 billion to the market capital at Rs2,082.660 billion.
The breach of two consecutive barriers, 7,200 and 7,300, in a session shows that both the financial institutions and leading brokers have resumed normal operations in an oversold market amid reports that liquidity problem now onward may not be a major irritant.
The snap rally shows the market has the capacity and will to respond bullishly to any good news related to its basic fundamentals and corporate health. Expectations of positive decision by the Securities and Exchange Commission of Pakistan (SECP) on the COT issue triggered a strong short-covering on selected counters, but sellers adhered to the sidelines on analysts’ predictions of an overdue sustained bull-run.
The fresh optimism gathered momentum followed by reports that the KSE has given fresh proposals on the COT issue and the perception that they are expected to be approved by the SECP brought investors back in the share business, brokers said. The KSE 100-share index, therefore, recovered 135 points at one stage, but finished reacted as till the closing bell widely-rumoured positive announcement on the resolve of the badla and margin financing issue did not come, they said.
All the leading index shares, notably OGDC, PTCL, Pakistan Oilfields and Pakistan Petroleum, led to the market recovery on strong anticipatory buying.
The general optimism prevailing in the trading hall reflects that well-informed among them have already found cue of the official nod on the market’s liquidity requirements as well as margin financing.
“It was a no-win situation for the contenders,” analysts said. “But any positive decision will certainly reflect the triumph of small savers who have lost a lot in the market’s protracted downturn.”
They said equities had the reasons to rise from the current levels on the strength of higher corporate announcements and dividends, but investors were awaiting the end of the current tussle on the COT issue.
For the second session in a row, Pakistan Petroleum, which has declined from its recent peak level of Rs224, rose by another Rs8.45, reflecting that the upward drive has started. Siemens Pakistan also rose by Rs30 amid shortage of floating stock, followed by MCB, Arif Habib Securities, Artistic Denim, Gatron Industries, Bhanero Textiles, Pakistan Oilfields, Sitara Chemicals, Nestle MilkPak, National Foods and Pakistan Oilfields, which posted gains ranging from Rs4.30 to Rs8.45.
Losers showed a fractional decline amid slow trading, barring Wyeth Pakistan and AKD Securities, off Rs18.25 and Rs18.85, respectively. Island Textiles, Shell Pakistan, Colgate Pakistan and Jived Omer followed them, off Rs3 to Rs12.45.
Trading volume rose to 149m shares from the previous 50m shares as gainers forced a strong lead over losers at 189 to 86, with 26 shares holding on to the last levels.
PTCL led the list of actives, up Rs1.25 at Rs61.85 on 34m shares, followed by OGDC, higher by Rs2.15 at Rs104.50 on 19m shares, Pakistan Oilfields, firm by Rs4.50 at Rs309.10 on 11m shares, MCB, up Rs4.30 at Rs90.95 on 10m shares, National Bank, steady by Rs1.30 at Rs107.50 also on 10m shares, and Pakistan Petroleum, higher by Rs8.45 at Rs177.75 on 9m shares.
Other actives were led by Fauji Fertilizer Bin Qasim, up 60 paisa on 5m shares, Fauji Cement, steady by one rupee also on 5m shares, DG Khan Cement, higher by 35 paisa on 3m shares and Nishat Mills, up Rs1.80 also on 3m shares.
FORWARD COUNTER: Pakistan Petroleum recovered another Rs8.55 at Rs179.55 on 19m shares, followed by PTCL, firm by Rs1.30 at Rs62.50 on 12m shares and OGDC, higher by Rs2.20 at Rs105.55 on 10m shares.
Other actives were led by MCB, higher by Rs4.15 at Rs91.95 on 7m shares and Pakistan Oilfields, up Rs5.15 at Rs312.85 on 6m shares. Some of the other leading shares also rose amid light trading.
DEFAULTER COS: Trading interest on this counter was light as investors covered positions in the ready section at the lower levels. Price changes and traded volume was light in the absence of strong demand.
KARACHI, Aug 2: Stocks on Tuesday shrugged off the recent hesitancy and staged a broad rally aided by strong institutional support amid hopes of a positive official decision on COT and margin financing. The sudden change in the market’s mood was well reflected in the KSE 100-share index, which recovered 129.48 points or 1.80 per cent at 7,324.80 points, adding Rs34 billion to the market capital at Rs2,082.660 billion.
For the second session in a row, Pakistan Petroleum, which has declined from its recent peak level of Rs224, rose by another Rs8.45, reflecting that the upward drive has started. Siemens Pakistan also rose by Rs30 amid shortage of floating stock, followed by MCB, Arif Habib Securities, Artistic Denim, Gatron Industries, Bhanero Textiles, Pakistan Oilfields, Sitara Chemicals, Nestle MilkPak, National Foods and Pakistan Oilfields, which posted gains ranging from Rs4.30 to Rs8.45.
