KARACHI, Oct 4: The KSE 100-share index on Tuesday maintained its upward drive and breached through the third consecutive barrier of 8,400 amid a briskly traded session where turnover figure soared to current year’s high of half a billion shares on massive buying in OGDC.
All the leading base shares participated in the sustained run-up under the lead of bank, oil and cement shares followed by reports of higher earnings and a good bit of speculative activity on selected counters.
The current price flare-up was attributed to rumours that the SECP has agreed to a proposal to raise the financing limit to Rs40 billion from the existing Rs25.00 billion to meet the rising funding demand of investors in a bull-market.
Although, it passed through a mid-session technical correction but managed to maintain its upward drive on active follow-up support in most of the leading shares both in the ready and the forward counters.
Finally, it closed around 8,426.77, up 97.07 points or 1.17 per cent, over the previous close of 8,329.70 and showed that the current run-up is not yet overdone as some of the leading base shares are still ruling well below their pre-reaction levels.
It was largely the strength of the OGDC, which holds 22 per cent weightage in it, leading bank shares, followed by others, which have also joined the race to hit new highs on the strength of higher earnings and hopes of handsome dividend. Oil and cement shares also performed credibly well but within the normal price range but persistent price flare-up in bank shares seems to be unfathomable at least at this stage.
“Despite the March market crash this year, leading bank shares, notably National Bank, MCB and Bank of Punjab have risen by 132, 177 and 127 per cent so far during the last month but price flare-up appears to be speculative and is not backed by any objective yardsticks”, says a leading stock analyst and “warned investors to play safe”.
The sharp rise in share values of PSO or Shell Pakistan is warranted by the perception of higher inventory gains owing to seven per cent increase in petroleum prices on October 1, but not in D.G. Khan Cement, which is heading to hit the high mark of Rs80 during the pre-budget sessions, he said.
The broader market was comparatively weak and as a result, minus signs held a modest lead over the plus ones under the lead of Javed Omer, Atlas Honda, Aventis, AKD Securities and Rafhan Bestfoods, which suffered fall ranging from Rs6.50 to Rs18. Other notable losers included EFU Life, Lakson Tobacco, Mehmood Textiles, Shell Pakistan, HinoPak, and Sitara Chemical, off Rs5 to Rs5.85.
Gainers were led by National Bank, OGDC, Murree Brewery, National Foods, Ferozsons Lab, PSO, Artistic Denim, Unilever Pakistan and Pakistan Refinery, up by Rs4.25 to Rs14.75.
Trading volume rose further to 501m shares from the previous 418m shares as gainers trailed behind the losers at 152 to 173, with 40 holding on to the last levels.
OGDC topped the list of most actives, sharply higher by Rs4.90 at Rs120.20 on 131m shares followed by D.G. Khan Cement, up by 70 paisa at Rs78.40 on 56m shares, National Bank, higher by Rs2.25 paisa at Rs156.50 on 54m shares, MCB, off Rs2.45 on 31m shares, PSO, higher by Rs8.90 on 21m shares and PTCL, lower 75 paisa on 17m shares.
Other actives were led by Nishat Mills, up by 65 paisa on 25m shares, Pakistan Petroleum, higher by Rs1.70 on 23m shares, Fauji Fertilizer BinQasim, lower 20 paisa on 16m shares and Bank of Punjab, easy 65 paisa on 13m shares.
FORWARD COUNTER: OGDC also led the list of actives on this counter and was marked up by Rs5.20 at Rs120.50 on 24m shares followed by National Bank, higher by Rs3.65 at Rs158.25 on 19m shares, and D.G.Khan Cement, firm by 55 paisa at Rs78.50 on 15m shares.
Other actives included Pakistan Petroleum, higher by Rs1.80 at Rs199.40 on 13m shares, Bank of Punjab, lower 25 paisa at Rs97.50 also on 13m shares but some others rose sharply higher but turned in light volumes.
DEFAULTER COS: Mukhtar Textiles came in for modest support and rose by 10 paisa at Rs7.25 on 0.116m shares, while others were modestly traded.
Among the prominent gainers, Trust Brokerage, Colony Sarhad Textiles, Marafco Industries and Ghandhara Industries were leading, which posted gains ranging from Re1 to Rs2.30. Dewan Auto was leading among the losers, off Re1 at Rs14.30.
DIVIDEND: Sitara Chemical, final 45 per cent, interim already paid 25 per cent, Mehmood Textiles, cash 40 per cent, both fell by Rs5 to Rs5.85 on post-dividend selling, Ghani Glass, cash 20 per cent plus bonus shares of five per cent.
KARACHI, Oct 4: The KSE 100-share index on Tuesday maintained its upward drive and breached through the third consecutive barrier of 8,400 amid a briskly traded session where turnover figure soared to current year’s high of half a billion shares on massive buying in OGDC.
The broader market was comparatively weak and as a result, minus signs held a modest lead over the plus ones under the lead of Javed Omer, Atlas Honda, Aventis, AKD Securities and Rafhan Bestfoods, which suffered fall ranging from Rs6.50 to Rs18. Other notable losers included EFU Life, Lakson Tobacco, Mehmood Textiles, Shell Pakistan, HinoPak, and Sitara Chemical, off Rs5 to Rs5.85.
