KARACHI, Aug 31: Stocks on Wednesday rose further under the lead of oil shares on active buying triggered by higher corporate dividend and anticipatory buying in the oil shares amid reports of increase in petroleum prices owing to a record rise in world crude oil rates.
Indications are that POL prices are expected to be revised upward by the oil marketing companies after keeping them static for a month and the increase could be much higher than the market perceptions. Smart inventory gains by the oil sector was said to be chief inspiring factor behind the sustained run-up.
The KSE 100-share index rose further higher and briefly breached through the barrier of 7,800 but failed to sustain it on late selling. It posted a fresh rise of 52.67 points at 7,798.36 as compared to 7,744.19 a day earlier.
The notable feature was that it hit the day’s peak level of 7,813.61 and the lowest 7,744.19 amid alternate bouts of buying and selling but demonstrated that the goal of 8,000 index level may now not be that elusive.
The increase in major oil share prices was sharp amid strong signals of massive inventory gains after the widely rumoured rise in POL prices in fortnightly revision late on Wednesday evening (Aug 31) but higher earnings by the leading bank shares continued to inspire fresh buying in them. Shell Pakistan was leading among them, up by Rs24.20 at Rs666.50.
Bank of Punjab, National Bank and MCB were leading among them, which not only accounted for large volumes also showed extended gains. PTCL followed them but fell from the day’s peak level of Rs67.50 to close at Rs66.80 but again massively traded.
All the leading shares, which had hit new lows during the last five months’ protracted bearish spell linked to badla issue, still have the potential to rise from the current levels as active short-covering in them is around, brokers said.
But some analysts predict a correction as the market has attained an overbought position during the last four sessions’ continued run-up. There is, however, no reason to believe that a big shakeout is around.
“The market may not reach its previous all-time record index level of 10,300 points as there are checks on speculative trading, it would certainly keep a bullish outlook in the weeks to come as its liquidity problem has been solved”, they said.
Leading gainers were led National Refinery and Shell Pakistan, up by Rs16.85 and Rs24.20 followed by Indus Dyeing, Pakistan Refinery, Attock Refinery, Attock Petroleum, Pakistan Petroleum, Abbott Lab and Berger Paints, which posted gains ranging from Rs4.05 to Rs8.90.
Losers were led by Wyeth Pakistan and Siemens Pakistan, off Rs12 and Rs34. They were followed by EFU Life, Fazal Textiles, Security Papers, Aventis, Ferozsons Lab, Gatron Industries and Shell LPG Gas, off Rs4 to Rs10.
Trading volume fell to 420m shares from the previous 476m shares as gainers forced a slight edge over the losers at 139 to 133, with 49 shares holding on the to the last levels.
PTCL again topped the list of actives, up by 35 paisa at Rs66.80 on 99m shares followed by Bank of Punjab, up by Rs2.15 at Rs99.40 on 49m shares, National Bank, firm by 90 paisa at Rs119 on 43m shares, OGDC, steady by 10 paisa at Rs114.25 also 43m shares, D.G.Khan Cement, up by 35 paisa at Rs62.15 on 30m shares, Fauji Fertilizer Bin Qasim, lower 35 paisa at Rs34.85 on 27m shares, Pakistan Petroleum, higher by Rs4.10 at Rs180 on 19m shares and MCB, off 75 paisa at Rs104.50 on 14m shares.
Other actives were led by Fauji Cement, up by 30 paisa on 13m shares and Pakistan Oilfields, higher by Rs1.30 on 10m shares.
FORWARD COUNTER: PTCL led the list of actives on this counter, up by 50 paisa at Rs67.45 on 15m shares followed by Pakistan Petroleum, higher by Rs4.95 at Rs182.50 also on 15m shares, and National Bank, steady by 25 paisa at Rs119.50 on 13m shares.
Bank of Punjab maintained its upward drive and rose by Rs2.30 at Rs100.60 on 12m shares, OGDC firm by 15 paisa at Rs115.40 on 10m shares. Others also rose amid active trading.
DEFAULTING COS: Barring fresh decline of Re1 and Rs1.20 in Crescent Standard Bank and Chenab Textiles at Rs12.50 and Rs23.75 respectively, other price changes were fractional and reflected lack of support rather than larger selling from any quarter.
DIVIDEND: Atlas Investment Bank, cash 10 per cent plus bonus shares of 20 per cent, Ferozsons Lab, cash 55 per cent (interim 25 per cent already paid), plus bonus shares of 30 per cent, General Tyre 17.5 per cent, Berger Paints, cash 30 per cent, interim 30 per cent already paid and bonus shares in the ratio of 1:4, one stock dividend for every four held.
BOARD MEETINGS: Pakistan International Container Terminal on Sept 3, Johnson & Philips on 5, Dawood Capital Management, Dawood Mutual Fund, Dawood Money Market Fund on 6, Al-Zamin Leasing, Unicap Modarab, Fauji Cement, and Quality Textiles on Sept 7.
KARACHI, Aug 31: Stocks on Wednesday rose further under the lead of oil shares on active buying triggered by higher corporate dividend and anticipatory buying in the oil shares amid reports of increase in petroleum prices owing to a record rise in world crude oil rates.
Leading gainers were led National Refinery and Shell Pakistan, up by Rs16.85 and Rs24.20 followed by Indus Dyeing, Pakistan Refinery, Attock Refinery, Attock Petroleum, Pakistan Petroleum, Abbott Lab and Berger Paints, which posted gains ranging from Rs4.05 to Rs8.90.
