KARACHI, Nov 14: The KSE 100-share index on Monday breached through the psychological barrier of 8,800 at 8,838.26, up by 44.33 points aided by active buying in most of the leading base shares.
Although some of the blue chips failed to resume their weekend run-up, the broader market performed credibly well, adding to the strength of index despite a lot of late profit-selling at the inflated levels.
News from the PTCL front were not that encouraging as investors could not precisely decide how to react in the absence of any “latest Dubai meeting leaks”.
Stocks, therefore, resumed trading on cautious note as there was no eagerly awaited official word on the PTCL deal after the Dubai round of talks between the Pakistan delegation and Etisalat management.
Some press reports carried by the local press, however, indicate that the deal is intact and further talks will be held on the still unresolved irritants shortly between the two parties.
Unconfirmed reports said the Pakistan Privatization Commission has agreed to extend the final payment (over $2bn) period for another 20 months in three instalments.
“But investors are in two minds about the deal in the absence of official word on it”, some analysts said “the official silence could well raise many questions about the unconfirmed reports and the deal itself”.
Investors should play safe as the entire media exercise may be aiming at bailing out the trapped shareholders in the PTCL, they fear, adding “the silence on the issue reflects all may not be well with the deal”.
“The PTCL deal may be a bit difficult to honour because of higher bid price,” says a leading broker, adding “a 64 rupee-share could hardly be sold at Rs117 to any shrewd prospective buyer in purely financial terms”.
However, higher corporate earnings kept investors and bargain-hunters in an upbeat mood as they massively played in those shares, which ensure quick capital gains, notably cement, bank and leading energy shares.
PTCL, although managed to finish fractionally higher but wide either-way price movement reflects that investors were not inclined to hold position in it. It hit the day’s peak level at Rs64.30 and the lowest at Rs62.50, before closing around Rs63.75.
Cement shares rose further under the lead of D.G.Khan, Fauji Cement and Lucky Cement and among the banks Bank Alfalah was leading, while National Bank came in for profit-selling. Auto shares remained in active demand on reports of higher interim production.
The notable feature was that some of the second-liners, notably Pak PTA and Fauji Cement came in for active support and rose sharply higher indicating a major shift in investor buying strategy.
Nestle Pakistan and Millat Tractors, which were up by Rs17 and Rs12.55 were leading among the gainers, followed by Honda Atlas, Indus Motors, Suzuki Motors, BOC Pakistan, ICI Pakistan, Shezan International, Dawood Hercules, Artistic Denim, Thal and Treet Corporation were leading, which posted gains ranging from Rs5 to Rs12.50.
Losers were led by Mustehkam Cement and National Refinery, off Rs6.90 and Rs13 respectively. Other notable losers included Central Insurance, Indus Dyeing, Attock Refinery, PSO and National Foods, off Rs5 to Rs6.80.
Trading volume was maintained at the previous level of 438m shares as gainers maintained a strong lead over the losers at 270 to 101, with 35 shares holding on to the last levels.
PTCL topped the list of most actives, up by 10 paisa at Rs63.75 on 42m shares followed by Pak PTA, higher by Re1 at Rs8.20 on 40m shares, Fauji Cement, up by Rs1.15 at Rs24.15 on 39m shares, D.G.Khan Cement, higher by 90 paisa at Rs103.20 on 36m shares, Nishat Mills, up by Rs4.10 at Rs102.60 on 20m shares and National Bank, lower by 20 paisa at Rs167 on 15m shares.
Other actives included Sui Northern Gas, sharply higher by Rs3.15 on 16m shares, Lucky Cement, firm by 95 paisa on 14m shares and Bank Alfalah, higher by Rs2.20 also on 14m shares.
FORWARD COUNTER: After initial rise, PTCL came in for active selling and fell to finish lower by 15 paisa at Rs63.65 on 14m shares followed by D.G.Khan Cement, up by 75 paisa at Rs104.35 on 13m shares and Fauji Fertilizer Bin Qasim, firm by Rs1.50 at Rs37.05 on 12m shares.
Nishat Mills also came in for active support and rose by Rs4.10 at Rs103.40 on 11m shares, followed by Lucky Cement, up by 80 paisa at Rs75 on 8m shares and some others, which showed good gains but on light turnover.
DEFAULTER COS: Schon Modaraba came in for stray support and rose by 10 paisa at Rs1.25 on 0.232m shares, while others were modestly traded.
Leading gainers were led by Crescent Standard Bank, Indus Polyester, Dandot Cement, Suzuki Motorcycles and Morafco Industries, which posted gains ranging from Re1 to Rs3.50, the largest gain being in Morafco.
KARACHI, Nov 14: The KSE 100-share index on Monday breached through the psychological barrier of 8,800 at 8,838.26, up by 44.33 points aided by active buying in most of the leading base shares.
“The PTCL deal may be a bit difficult to honour because of higher bid price,” says a leading broker, adding “a 64 rupee-share could hardly be sold at Rs117 to any shrewd prospective buyer in purely financial terms”.
