|
|
|
| September 12, 2005 | Monday | Sha’aban 7, 1426 |
Stocks stay bullish on hopes of better prospects
THE stocks stayed bullish last week as investors kept strengthening their position in bank and energy shares amid predictions of better corporate earnings and enhanced dividend. What seemed to be a motivating force behind the sustained run-up was the attractive bait of capital gains sans the speculative activity as genuine buying dominated the trading.
The high cash dividend of 60 per cent plus the bonus shares of 40 per cent by the Atlas Autos, maiden bonus shares of 10 per cent, cash dividend of 14 per cent and 50 per cent final by the Dawood Investment Bank, the International Investment Bank and the Atlas Battery, respectively boosted the weekend market.
The KSE 100-share index and the market capital maintained their upward drive and rose further by 100 points and Rs30 billion, respectively.
Despite a brief mid-week interruption on technical ground, the stocks maintained their upward drive on renewed support aided by higher corporate announcements, notably the bonus shares by some second-liners.
An idea of the market’s bullish bias may well be had from the fact that the Friday’s strike called by the opposition parties seeking the President’s resignation from the two posts failing in checking the investor enthusiasm for the scrips of their choice as they rose further in unison across the board.
The outstanding performance of bank and energy shares on the strength of higher earnings was said to be the chief motivating force behind the continued bullishness.
I think the bulls were eyeing the index level of 8,000 points before taking an overview of their inventories, a leading stock analyst said adding and that level was now not an elusive goal.
Click to view the larger image
After several abortive attempts, the KSE 100-share index briefly crossed the barrier of 7,900 points on renewed support aided by the reports of higher crop earnings under the lead of the National Bank.
It ended the session higher by 99.48 points at 7,889.25 as compared to 7,789.76 at the last weekend, reflecting the strength of leading base shares, notably the PTCL, the OGDC and the Pakistan Petroleum.
Although, management of the National Bank did not declare any interim dividend or bonus shares, the market talk of one of it generated a lot of speculative buying. Earning per share at Rs7.44 at the current rates was attractive bait for any prospective investors, brokers said.
Finally, it finished around Rs126.20, up from the previous close considered a higher rise in a 10-rupee share. Brokers predict fresh increase in its share value probably to its pre-reaction level of Rs160.
We don’t think the strike could halt the dividend-linked rally, said a leading analyst, ‘there could be brief interruption here and there but it appeared difficult to check the current investor enthusiasm about the share business.
The opposition had outlined its anti-government drive in phases but the government appeared firmly settled owing to the economic recovery and those who matter were not inclined to take that line because of the chance of violence.
Higher dividend pouring in each session, notably from bank and energy shares followed by others had made many a millionaire in few sessions and that was why none was inclined to get out at least in the near-term, he said.
In the last couple of weeks the market had sought higher levels after each fall and there appeared no immediate depressant which could work against the general optimism, analysts said.
Moreover, expectations of high cash dividend and bonus shares were there but investors refused to seek other avenues at the moment, they said, adding though stray outflow of money to the bullion market was present.
Prominent gainers were led by the Shell Pakistan, the PSO, Al-Ghazi Tractors, Millat Tractors, Attock and the National Refinery, Wyeth Pakistan, Adamjee Insurance, Abbott Lab, Shell Gas and many others.
Losers were led by the National Foods on post-dividend selling, the EFU Life, National Foods, Haroon Oils, Attock, Aventis, Nestle MilkPak, Petroleum, the AKD Securities, Colgate Pakistan and the Pakistan Services.
FORWARD COUNTER: With the exception of the Pakistan Oilfields, the OGDC among the actives, others which fell modestly lower. All others rose sharply under the lead of the MCB, National Bank, Nishat Mills, the PSO, Fauji Fertiliser Bin Qasim and the PTCL amid active trading.—Mohammad Aslam
|
|
|
|
