KARACHI, Oct 7: Active renewed buying in leading bank and cement shares on Friday put the market back on the rails, signalling that the current run-up may not be overdone and the brief interruption was caused by some technical factors.
The weekend recovery is expected to be carried over to the next week as speculative investors and bargain-hunters are not inclined to entertain bearish ideas ahead of expectations of higher dividend from the cement sector.
Although the support was selective, it encouraged other bulls to be back in the market and they extended the helping hand to the leading bulls in driving bears out of the market amid falling volumes.
After having early risen by 67 points, the KSE 100-share index finally ended with a fractional gain of 2.14 points owing to the relative weakness of leading base shares including PTCL and OGDC. It touched the high and low at 8,582.41 and 8,495.70 before bouncing back above the 8,500 level.
It should have shown a bigger gain had PTCL and OGDC joined the race but some of the bulls managed to prevail after having indulged in profit-taking in them.
Fresh heavy buying and smart gains provided the day’s highlight as bulk of support remained confined them followed by D.G. Khan Cement.
D.G. Khan Cement, on fresh buying ahead of its board meeting, MCB and National Bank, the trio together accounted for about 130m shares, were quoted higher by Rs3.20, Rs5.85 and Rs1.25 respectively and took the entire market along with them into the plus column, analysts said. The first two have surpassed their previous career-best levels at the current rates.
“The return of bull market despite predictions of a big shakeout showed that the current run-up is not overdone and could be carried through the next week, falling volumes notwithstanding”, they said.
Some of the final dividend announcements from the cement sector in the backdrop of about 10 per cent rise in exports and interim cash or bonus dividend from the banking companies may not allow the bulls to leave the arena for the near-term, some others predicted.
However, by and large the buying interest remained essentially selective and confined to a dozen liquid shares but this is a part of the game despite slow activity during the holy month of Ramazan.
Plus signs again dominated the list under the lead of AKD Securities and Unilever Pakistan, up by Rs13.90 and Rs19.50 followed by Arif Habib Securities, EFU Life, MCB, Jevdan Cement, Mustehkam Cement, Suzuki Motors, Attock Refinery, Pak Datacom and Artistic Denim, which posted gains ranging from Rs3.15 to Rs12.
Prominent losers were led by National Refinery and Dawood Hercules, off Rs3 and Rs7, while Island Textiles, Gul Textiles, Blessed Textiles, Sapphire Fibre, National Refinery, Pakistan Refinery, Atlas Honda and Shezan International, which suffered fall ranging from Rs2 to Rs3.
Trading volume suffered fresh contraction to 261m shares, from the previous 297m shares as gainers held a fair lead over the gainers at 145 to 124, with 33 shares holding on to the last levels.
The most active list was again topped by D.G.Khan Cement, higher by Rs3.20 at Rs84.35 on 61m shares, MCB, up by Rs5.85 at Rs134.85 on 47m shares, National Bank, firm by Rs1.25 at Rs158.75 on 21m shares, OGDC, off Rs1.30 at Rs120.05 on 17m shares, Fauji Cement, steady by 55 paisa at Rs17.65 on 14m shares, PTCL, easy 25 paisa at Rs63.25 on 9m shares and Faysal Bank, higher by Rs1.65 at Rs68.65 on 6m shares. It is in active demand for the last couple of sessions and has risen sharply higher.
Other actives were led by Fauji Fertilizer Bin Qasim, steady five paisa on 11m shares, Sui Northern Gas, off Rs1.15 on 10m shares and Maple Leaf Cement, higher by Rs1.35 on 7m shares.
FORWARD COUNTER: D.G.Khan Cement was traded higher by Rs1.25 on this counter and was quoted at Rs84.45, on 15m shares, followed by MCB, higher by Rs4.95 on 13m shares and National Bank, up by Rs1.45 at Rs160.20 on 7m shares.
Other actives were led by OGDC, lower Rs1.75 at Rs119.55 on 5m shares and Maple Leaf Cement, higher by Rs1.30 at Rs31.25 on 4m shares. Others were modestly traded on the higher side.
DEFAULTER COS: Morafco maintained its upward drive on renewed support, up by Rs1.30 at Rs28.05, while Saleem Denim rose by Re1 at Rs2.25. Others were fractionally traded.
DIVIDEND: Quetta Textiles, cash 15 per cent, Pak Elektron, cash 10 per cent, bonus shares 15 per cent, Sapphire Fibres, cash 15 per cent, Reliance Cotton, 12.5 per cent, Allawasya Textiles, 17.5 per cent.
KARACHI, Oct 7: Active renewed buying in leading bank and cement shares on Friday put the market back on the rails, signalling that the current run-up may not be overdone and the brief interruption was caused by some technical factors.
Plus signs again dominated the list under the lead of AKD Securities and Unilever Pakistan, up by Rs13.90 and Rs19.50 followed by Arif Habib Securities, EFU Life, MCB, Jevdan Cement, Mustehkam Cement, Suzuki Motors, Attock Refinery, Pak Datacom and Artistic Denim, which posted gains ranging from Rs3.15 to Rs12.
