Stocks cross psychological barrier of 8,000 points
By Our Staff Reporter
KARACHI, Sept 20: After several abortive attempts, KSE 100-share index on Tuesday cross the psychological barrier of 8,000 on strong renewed buying in the oil and auto shares boosted apparently by higher payouts by Millat Tractors and OGDC.
The run-up was participated by all the major sectors, which include the cement shares that suffered sharp pruning after the announcement of below market dividend by the Nishat group of companies including DG Khan Cement and Nishat Mills. But both rebounded from the overnight lows on strong short-covering purchases.
The index ended the session with a fresh rise of 93.20 points or 1.17 per cent at 8,066.17 as compared to 7,972.97 a day earlier as all leading base shares showed fresh gains.
“Now it appears almost certain that it is progressively moving towards it lost glory of 10,300 level hit a few months back,” predicts a leading stock analyst “but this time the rise is genuine backed by higher corporate dividends and is not the outcome of speculative or bargain-hunting.”
Some major markets and trading centres close to the KSE were closed on account of Shab-i-Barat but punters meant business and were not in a holiday mood despite having prayed throughout the last night.
“Leading institutional traders are in the arena and for some good reasons too,” another said adding “that the chief driving force, aside the banks, is enough floating liquidity both under the CFS and outside it.”
Technical corrections here and there notwithstanding, there is no reason to believe that the market could beat a hasty retreat from the current levels but is poised to build up a strong and viable rally on the current upward drive beyond the index level of 8,000.
Banks shares, notably National Bank, MCB and Bank of Punjab and some others are heading towards new high on active bank buying followed by sympathetic covering purchases from other quarters.
Below market dividend of 15 per cent on Monday dragged DG Khan Cement share value sharply lower but it rebounded on market talk of a bonus share. It finished recovered from the overnight post-dividend low of Rs69.55 to Rs73. Nishat Mills, another share of this group also suffered sharp decline followed by reports of below market cash dividend 25 per cent also recovered the overnight loss.
Pakistan Refinery and Wyeth Pakistan were among the leading gainers,up by Rs.15.60 and 26.00,followed by IGI, National Refinery, Shell Pakistan, Indus Motors, Millat Tractors, Honda Atlas, Pakistan Cables, Engor Chemical, Dawood Hercules, National Foods, Rafhan Maize, Berger Paints and Arif Habib Securities, higher by Rs4 to Rs12.95.
Losers were led by Unilever Pakistan and Bhanero Textiles, off Rs11 to Rs15. Others fell fractionally barring Allied Bank, Dadex, Adamjee Insurance, and Jahangir Siddiqui & Co, off Rs2.75 to Rs4.05.
Trading volume rose to 305m shares from the previous 293m shares as gainers forced a strong lead over the losers at 185 to 123, with 34 shares holding on to the last levels.
DG Khan Cement topped the list of actives, up Rs3.45 at Rs73 on 42m shares followed by OGDC, higher by Rs1.75 at Rs112.25 on 33m shares, Bank of Punjab, firm by one rupee at Rs108 on 25m shares, Fauji Cement, steady by 80 paisa at Rs16.85 on 21m shares, National Bank, unchanged at Rs133.70 on 20m shares, PTCL, firm by 10 paisa at Rs64.75 on 19m shares, MCB up one rupee at Rs122.30 on 14m shares and Nishat Mills, higher Rs4.30 at Rs91.25 on 11m shares.
Other actives were led by Sui Northern Gas, lower 35 paisa on 15m shares followed by Fauji Fertilizer Bin Qasim, up 75 paisa on 12m shares and Nishat Mills, sharply higher by Rs4.30 on 11m shares.
FORWARD COUNTER: DG Khan Cement also led the list of actives on the forward counters, up 345 at Rs73.40 on 11m shares, followed by OGDC, higher by Rs1.55 at Rs112.80 on 8m shares and Engro Chemical, up Rs4.85 at Rs141.75 on 6m shares.
Nishat Mills followed them, higher by Rs4.40 at Rs92.45 on 6m shares, Bank of Punjab, up one rupee at Rs108.85 also on 6m shares. Others were also quoted higher on light turnover.
DEFAULTER COS: Mehr Dastgir, Dewan Auto and Morafco Industries again came in for active support and rose by 75 paisa to one rupee at Rs9, 10.70 and 15 respectively on light turnover.
DIVIDEND: Millat Tractors, cash 150 per cent, bonus shares 30 per cent, Attock Cement, cash 12.5 per cent, Haji Dossa,10 per cent, Bolan Casting 50 per cent, Rupali Polyester 30 per cent and Jahangir Siddiqui Investment Bank, nil.
BOARD MEETINGS: Tri-Star Modaraba, second Tri-Star Modaraba, Nimir Chemicals, Kohinoor Textiles, Shaheen Cotton Mills and Shezad Textiles, on Sept 23, Prudential Modaraba and Indus Polyester on Sept 24.
KARACHI, Sept 20: After several abortive attempts, KSE 100-share index on Tuesday cross the psychological barrier of 8,000 on strong renewed buying in the oil and auto shares boosted apparently by higher payouts by Millat Tractors and OGDC.
Losers were led by Unilever Pakistan and Bhanero Textiles, off Rs11 to Rs15. Others fell fractionally barring Allied Bank, Dadex, Adamjee Insurance, and Jahangir Siddiqui & Co, off Rs2.75 to Rs4.05.
