Index recovers 82 points on higher corporate results
By Our Staff Reporter
KARACHI, Oct 27: Stocks on Thursday rose from the previous lower levels as reports of higher corporate earnings by most of leading companies triggered active short-covering in bank, oil, cement and auto shares followed by a tactical run-up.
But the rally was inconclusive ahead of a closure as the market will remain close on Friday (today) on account of Jumatul Wida.
The KSE 100-share index recovered from the recent lows boosted by heavy buying in PTCL followed by reports that its sale deal with UAE-based Etisalat will go through before the deadline of Oct 28. But it failed to hold on to its early run-up in the absence of a follow-up support.
The KSE 100-share index recovered 82.24 points at 8,317.36 as compared to 8,235.12 a day earlier, as leading base shares came in for active short-covering at the lower levels and finished recovered.
The market optimism about the completion of formalities was based on the statements of the adviser to the prime minister on finance, who held talks in Dubai with the Etisalat management on the unresolved issues, that the deal will be finalized before the deadline. But its share value posted a fresh decline of 60 paisa as investors apparently did not buy the idea about a possible final deal.
But leading analysts are still sceptical about the end of impasse on the deal as the issues involved, including a huge final bid money, are too tricky to be resolved well in time, although the stage of “take it or leave it” has not yet arrived.
“Investors should play safe until the final official word on the issue is out from both the sides and should not jump to hasty conclusions on press reports,” they warned.
“The market has a big stake in the entire issue and so do some of the leading investors and brokerage houses and stakeholders should await the deadline of Oct 28,” some others said.
The other aiding positive factor was higher corporate earnings by over half a dozen companies, including OGDC, Pakistan Petroleum, Nishat Chunian, and some others followed by perceptions of handsome dividends.
On technical grounds, the market has, however, more than one reason to rise from the current lower levels being in an oversold position and the PTCL deal could give it the needed upward push.
Plus signs held a modest lead over the minus ones, leading gainers being HinoPak Motors, Lakson Tobacco, PSO, United Sugar, Pakistan Refinery, Arif Habib Securities and Wyeth Pakistan, up by Rs7.55 to Rs20.
Other good gainers included National Bank, MCB, Mustehkam Cement, Attock Petroleum, Pakistan Petroleum, Indus Motors and Pak-Suzuki Motors, up Rs5.30 to Rs6.90.
Losers were led by Nestle Pakistan and Unilever Pakistan, off Rs10 and Rs49.95, respectively, followed by Muslim Insurance, Bestway Cement, Pak Datacom, Glaxo-SKF, PNSC, Security Papers, Bata Pakistan, and Nishat Chunian, off Rs3 to Rs4.25.
Trading volume rose to 293m shares from the previous 204m shares as gainers held a modest lead over losers at 133 to 127, with 40 shares holding on to the last levels amid active trading.
PTCL again topped the list of actives, lower 60 paisa at Rs60.20 on 47m shares, followed by Bank of Punjab, up 75 paisa at Rs91 on 40m shares, DG Khan Cement, higher by Rs3 at Rs91 on 35m shares, MCB, up Rs5.80 at Rs149.80 on 21m shares and OGDC, higher by 90 paisa at Rs106.60 on 19m shares.
Other actives were led by Fauji Cement, up one rupee on 18m shares, National Bank, higher by Rs6.90 on 15m shares, Pakistan Petroleum, higher by Rs6.70 also on 15m shares, Lucky Cement, firm by 30 paisa on 12m shares and PSO, higher by Rs7.75 on 8m shares.
FORWARD COUNTER: PTCL remained under pressure despite positive news about its sale deal, but fell by Rs1.19 at Rs60.75 on 23m shares, Bank of Punjab, higher by Rs3.12 at Rs95 on 10m shares and Pakistan Petroleum, up Rs7.40 at Rs204.50 on 10m shares.
Other actives were led by DG Khan Cement, higher by Rs3.20 at Rs92.75 on 9m shares, OGDC, up Rs1.70 at Rs108.70 on 8m shares, followed by MCB, PSO, Engro Chemical and some others, up by Rs2.36 to Rs7.25, largest rise being in PSO.
DEFAULTER COS: Barring Ghandhara Industries and Morafco Industries, which posted fresh gains of Rs1.20 and Rs2.50 at Rs57.90 and Rs52.55, respectively, others were fractionally traded amid slow business.
KARACHI, Oct 27: Stocks on Thursday rose from the previous lower levels as reports of higher corporate earnings by most of leading companies triggered active short-covering in bank, oil, cement and auto shares followed by a tactical run-up.
The other aiding positive factor was higher corporate earnings by over half a dozen companies, including OGDC, Pakistan Petroleum, Nishat Chunian, and some others followed by perceptions of handsome dividends.
