KARACHI, Nov 21: Stocks On Monday came in for renewed support aided by more than targeted aid pledges of $5.8 billion by the foreign countries at the Islamabad donor conference and rose further under the lead of bank and textile shares. The KSE index breached the barrier of 9,000 but failed to sustain it.
The perception that the economy and bourses would get further boost after the reconstruction work starts in the quake-hit areas triggered a lot of covering purchases in some of the pivotals, which rose sharply higher.
The market’s early buoyant outlook was also reinforced by the KSE 100-share index, which briefly touch the psychological barrier of 9,000 at 9,001.22 but failed to sustain it on late profit-selling. It rose by 27.37 points at 8,960.88 as compared to 8,933.51 at the weekend session.
However, it is satisfying to note that broader market performed well sans the pivotals including the leading base shares, which indicates that future market outlook is bullish despite a lot of profit-selling in the overvalued oil shares. Insurance and bank and some of the leading fertilizer and textile shares came in for active buying and rose appreciably.
All eyes are now focused on the index level of 9,000 if it resumes its upward drive to its next chart point of 10,000 during the current week there could be sustained bull-run and if falters from this level there will be spate of bear selling, brokers predict.
“The early buying euphoria about the impact of aid pledges and their likely impact on the economy seems to have lost its importance as a market stimulant owing to some second thoughts on them”, says a leading analyst “the term of soft loan for bulk of it ($4bn) appears to have triggered late selling”.
“The lingering issue of the PTCL in part also overshadowed the positive impact of the donor conference on the bourses”, some others said “but those who could peep through the future are terribly bullish about the positive impact”.
Whether or not the fresh round of talks on the PTCL issues in Dubai will be final, the transaction could well prove a double-edged weapon for the market as the failure may have negative fall-out on the market, they added.
It will also affect the sell-off of PSO next month for which half a dozen prospective bidders have already been short-listed, they said.
The selling at the inflated levels was also attributed to possible implications for the buoyant cement industry if the reconstruction in the quake devastated areas is started by using fibre glass and wood, they said.
It was, however, widely speculated that the economy will receive the needed boost if all the aid pledges are honoured by the donors and well in time.
Trading volume fell to 395m shares as investors have a look on the developing corporate scenario but gainers held a fair lead over the losers at 222 to 137, with 43 shares holding on to the last levels.
Leading gainers were led by Colgate Pakistan and Unilever Pakistan, up by Rs13.10 and Rs25 followed by Metropolitan Bank, United Bank, National Bank, Adamjee Insurance, Central Insurance, IGI, Muslim, Fazal Textiles, Premier Sugar, Engro Chemical, Packages and Lakson Tobacco, which posted gains ranging from Rs4 to Rs9.
Losers were led by Siemens Pakistan and Artistic Denim, off Rs34.90 and Rs13.35. Other prominent losers included Javed Omer, Yousuf Textiles, Attock Petroleum, Shell Pakistan, Honda Atlas, Clariant Pakistan, Ghani Glass, Mitchell’s Fruits, and Honda Atlas, off Rs3 to Rs6.55.
Trading volume fell to 395m shares from the previous 410m shares as investors have a second thought on the developing corporate scenario.
National Bank came in for strong support and led the list of actives, up by Rs4.85 at Rs172.65 on 40m shares followed by Fauji Cement, up by 15 paisa at Rs26.70 on 39m shares, D.G.Khan Cement, off 95 paisa at Rs103.55 on 33m shares, Maple Leaf Cement, up by Rs1.30 at Rs40.05 on 30m shares, Fauji Fertilizer Bin Qasim, lower 30 paisa at Rs37.10 on 27m shares and PTCL, off 70 paisa at Rs63.65 on 15m shares.
Other actives were led by Bank of Punjab, up by 70 paisa on 23m shares, Nishat Mills, higher by Rs1.60 on 11m shares, Sui Southern Gas higher by Rs1.25 also on 11m shares and Bank Alfalah, up by 85 paisa on 10m shares.
FORWARD COUNTER: Maple Leaf Cement, one of the low-priced cement shares came in for active short-covering at the current level and rose by Rs1.50 at Rs40.25 on 11m shares followed by D.G. Khan Cement, lower Rs2.05 at Rs103.25 on 9m shares and National Bank, higher by Rs4.55 at Rs172.75 on 8m shares.
Others were led by Nishat Mills, up by Rs1.20 at Rs102 on 5m shares, Bank of Punjab, steady by 70 paisa at Rs99.70 on 4m shares and some others including leading fertilizer shares on modest turnover.
DEFAULTER COS: Dandot Cement was actively traded, up by 45 paisa at Rs12.80 on 0.619m shares, while Morafco Industries, came in for active selling at the higher level and fell by Rs3.55 at Rs67.45 without any deal. Fazal Vegetable Ghee on the other hand rose by Re1 at Rs5.60.
KARACHI, Nov 21: Stocks On Monday came in for renewed support aided by more than targeted aid pledges of $5.8 billion by the foreign countries at the Islamabad donor conference and rose further under the lead of bank and textile shares. The KSE index breached the barrier of 9,000 but failed to sustain it.
“The early buying euphoria about the impact of aid pledges and their likely impact on the economy seems to have lost its importance as a market stimulant owing to some second thoughts on them”, says a leading analyst “the term of soft loan for bulk of it ($4bn) appears to have triggered late selling”.
