KARACHI, Sept 14: The KSE 100-share index on Wednesday confidently crossed the 7,900-point barrier, signalling that its upward drive will continue on the strength of positive announcements from the corporate sector and return of the leading bulls.
After several previous attempts, the breakthrough came as the broader market performed credibly well on strong short-covering. It ended the day with a smart rise of 61.82 points at 7,956.50 as compared to previous 7,894.68 a day earlier.
Barring National Bank and PTCL, most of the leading base shares finished with extended gain under the lead of OGDC and Pakistan Oilfields on active short-covering at the lower levels.
After ruling relatively sluggish during the last two sessions, shares made a broad recovery as leading investors and financial institutions were back in the market and made active short-covering at the lower levels.
The big question is being debated in the market is that “whether or not the index is edging up to attain its past meteoric level of 10,300 point established early this year followed by a massive plunge in which small investors lost about Rs15 billion.
One thing, however, appears certain that it could move within the level of 9,000 on the higher side and 8,000 on the lower side if all goes well with the political scenario, some brokers predict.
“The higher corporate announcements coming in daily indicate that investors have no reasons to be shy after having made bigger commitments on the selected counters, notably those where dividend are due,” analysts said. “Most of the shares of those sectors have still higher chances of capital gains.”
No share reaches a saturation point as consolidation forces remain at work in the form of technical corrections after each rise and fall, which adds to the inherent strength of the most liquid ones.
Bank and energy shares again led the market advance on reports of higher earnings and chances of higher capital gains on those counter where dividend announcements are overdue.
Cement sector followed them under the lead of DG Khan Cement and Fauji Cement on identical reasons, keeping investors in a positive mood followed by their active participation in the share business.
Plus signs dominated the list under the lead of Arif Habib Securities and Rafhan Maize Products, up Rs16.40 and Rs30 respectively. Other prominent gainers being Adamjee Insurance, United Sugar, PSO, Berger Paints, Treet Corporation, Nestle MilkPak, Dawood Hercules, Millat Tractors, Attock Refinery, Engro Chemical, Artistic Denim and Pakistan Oilfields, which posted gains ranging from Rs5.65 to Rs12.25.
Losers were led by AKD Securities and Wyeth Pakistan, off Rs16.50 and Rs54 followed by Ferozsons Lab, HinoPak Motors, Aventis, Unilever Pakistan and IGI, off Rs4 to Rs7.
Trading volume further rose to 345m shares from the previous 336m shares as gainers held a strong lead over the losers at 227 to 111, with 40 shares holding on to the last levels.
DG Khan Cement topped the list of most active on heavy buying ahead of its board meeting next week, up Rs1.65 at Rs70.45 on 53m shares, followed by PTCL, lower 55 paisa at Rs64.90 on 22m shares, MCB, up Rs1.65 at Rs118.70 on 21m shares, Nishat Mills, lower 35 paisa at Rs94.40 also on 21m shares, National Bank, off 65 paisa at Rs127.60 on 18m shares, Bank of Punjab, higher by Rs1.55 at Rs106.65 on 18m shares and OGDC, up 65 paisa at Rs110.15 on 17m shares.
Pakistan Oilfields recovered overnight post-dividend loss of Rs12.25 at Rs352.85 on 15m shares, while Fauji Fertilizer Bin Qasim, rose by 70 paisa on 17m shares followed by Fauji Cement, up 60 paisa on 16m shares.
FORWARD COUNTER: Nishat Mills came in for active support and posted a fresh rise of 35 paisa at Rs95.70 on 9m shares followed by DG Khan Cement, higher by Rs1.70 at Rs70.95 on 8m shares and Pakistan Oilfields, up Rs12.30 at Rs356.50 also on 8m shares.
Other actives were led by OGDC, up 55 paisa at Rs111 on 7m shares and Fauji Fertilizer Bin Qasim, higher 70 paisa at Rs35.20 on 6m shares. Other leading shares were modestly traded but mostly on the higher side.
DEFAULTER COS: Crescent Standard Bank came in for active short-covering at the lower levels and rose by 75 paisa at Rs12.75 on 0.669m shares. All others were modestly traded mostly on the higher side in sympathy with the ready counter.
DIVIDEND: Dawood Lawrence, bonus shares at the rate of 10 per cent, Habib Modaraba, cash 15 per cent, Fazal Textiles 25 per cent, Pakistan Papersack 20 per cent, BRR International Modaraba 11 per cent, Shabbir Tiles, cash 15 per cent, bonus shares 20 per cent, Pakistan International Containers Terminal, 10 per cent preference shares.
BOARD MEETINGS: Baig Spinning, on Sept 19, Trust Leasing, Millat Tractors, Netsol Technologies, National Equities, Dadabhoy Construction, Bilal Fibre on 20, and Liberty Mills on Sept 21.
KARACHI, Sept 14: The KSE 100-share index on Wednesday confidently crossed the 7,900-point barrier, signalling that its upward drive will continue on the strength of positive announcements from the corporate sector and return of the leading bulls.
No share reaches a saturation point as consolidation forces remain at work in the form of technical corrections after each rise and fall, which adds to the inherent strength of the most liquid ones.
