Index crosses 8,300-level as buying spree continues
By Our Staff Reporter
KARACHI, Oct 3: The KSE 100-share index on Monday breached through the barrier of 8,300 and finished around the day’s highest level boosted by fresh heavy buying in bank and oil giants aided by perceptions of higher corporate earnings.
The interesting feature was that the KSE authorities had to apply circuit breakers to forestall further price flare-up in several leading oil shares and some other blue chips.
An increase of 104 points or 1.26 per cent in the KSE index signals that the current rise of about seven per cent in petroleum prices could well prove a sustaining factor behind the market’s any future surge.
Even the PTCL maintained its upward drive on active support amid conflicting reports about the deal despite Etisalat reiterated its commitment to honour it within a month, brokers said, adding “although investors were still a bit cautious before making bigger commitments at the current attractively lower levels.”
Driven by massive dividend-related buying in the bank shares followed by some leading base shares including OGDC and PSO, it surged to close with a net rise to 104.04 points at 8,320.20 as compared to 8,225.66 points a day earlier.
The breach of this barrier is significant in more than one ways as it could work both ways about the future share business outlook, analysts said adding “massive buying in bank shares under the lead of National Bank and MCB appears to be speculative”.
But some others said the market was heading towards its previous peak level of 10,300 points on the strength of some positive basic fundamentals and was trying to regain its lost glory.
There is no denying of the fact that banks have earned phenomenal profits during the last couple of years but the current sustained price flare-up is not backed by the objective conditions, they said.
The 10-rupee share of National Bank was heading toward its last peak level, while that of MCB had already hit its new high and indications were that both are out to set new records. Bank of Punjab was following them. All the three were quoted at Rs152.70, Rs139.70 and Rs123.05 respectively.
The speculative run-on in them may be based on some ‘inside information’ about interim cash dividend or bonus shares but in financial terms the price flare-up could be deceptive, some others said.
Oil shares, notably PSO and Shell Pakistan had sound reasons to respond bullishly to seven per cent increase in petroleum prices on Oct 1, and so did D.G. Khan Cement, which had soared to Rs77.50 on dividend-related anticipatory buying, but others were apparently rising in sympathy under the lead of some leading textile shares, which declared higher dividend for the last year.
Plus signs dominated the list under the lead of Unilever Pakistan and Millat Tractors, up by Rs20 and Rs130.40, followed by BOC Pakistan, Treet Corporation, Wyeth Pakistan, Glaxo-SKF, Pakistan Oilfields, Artistic Denim, Shell Pakistan, PSO, Atlas Honda, were among the other major gainers, which posted gains ranging from Rs5.20 to Rs12.50.
Prominent losers were led by Shezan International and Ferozsons Lab, off Rs8. and Rs8.50 respectively. EFU General, Premier Sugar, Attock Cement, Pakistan Cables, and Dawood Hercules followed them, off Rs3 to Rs7.
Trading volume soared to 418m shares from the previous 348m shares as gainers maintained a strong lead over the losers at 208 to 137, with 47 holding on to the last levels.
National Bank topped the list of most actives, up by Rs7.25 at Rs152.70 on 65m shares followed by D.G.Khan Cement, higher by 20 paisa at Rs77.50 on 45m shares, MCB, up by Rs13.40 at Rs139.70 on 40m shares, OGDC, firm by Rs1.30 at Rs115.90 on 34m shares, Bank of Punjab, up by Rs5.15 at Rs123.05 on 22m shares, PSO, higher by Rs12.50 on 19m shares and PTCL, steady by 45 paisa at Rs61.95 on 17m shares.
Other actives included Nishat Mills, up by Rs2.10 at Rs96.60 on 18m shares, Fauji Fertilizer Bin Qasim, lower 60 paisa on 16m shares and Fauji Cement, up by 20 paisa also on 16m shares.
FORWARD COUNTER: National Bank also led the list of actives on the cleared list, up by Rs7.50 at Rs154.60 on 15m shares followed by Bank of Punjab, higher by Rs4.60 at Rs97.85 on 13m shares, and MCB, up by Rs3.90 at Rs132.65 on 11m shares.
D.G. Khan Cement on the other hand rose modestly by 70 paisa on 11m shares followed by Pakistan Petroleum, higher by 75 paisa at Rs197.80 on 7m shares. Others showed fractional fall and gains.
DEFAULTER COS: Modest trading was witnessed on this counter where Trust Brokerage, Mukhtar Textiles, and Morafco Industries posted gains ranging from Re1 to Rs1.10, Taxila Engineering and Crescent Board fell by Re1 each on selling at the higher levels.
DIVIDEND: Gul Ahmed Textiles, bonus and right shares at 10 per cent, Shadab Textiles, cash 12.5 per cent, Grays of Cambridge, cash 10 per cent, National Silk, cash 10 per cent, Bestway Cement, cash 10 per cent plus bonus shares of the same amount, Capital Mutual Fund, cash 10 per cent, IBL Modaraba, cash 10 per cent, Kohat Cement, bonus shares at the rate of 50 per cent, Noon Pakistan, 100 per cent on ordinary shares and 12 per cent on preference shares, Searle Pakistan, cash 15 per cent and bonus share 10 per cent, Husein Industries cash 10 per cent, Tariq Glass, cash five per cent, bonus shares 10 per cent, while about dozen companies, mostly from the textile sector omitted dividend for their last year.
KARACHI, Oct 3: The KSE 100-share index on Monday breached through the barrier of 8,300 and finished around the day’s highest level boosted by fresh heavy buying in bank and oil giants aided by perceptions of higher corporate earnings.
The speculative run-on in them may be based on some ‘inside information’ about interim cash dividend or bonus shares but in financial terms the price flare-up could be deceptive, some others said.
