KARACHI, Nov 24: National Bank on Thursday remained under speculative squeeze and maintained its upward drive apparently to its next target of Rs200 after circuit breakers failed to check a sustained price flare-up for the third session in a row.
“No one could deny the fact that its corporate performance is more than encouraging and there is a talk of bonus shares and expansion in its foreign branch network, but the current price level is not fully warranted in financial terms,” analysts said.
On the broader market, heavy buying in bank, cement and leading oil shares generated a lot of buying on other counters in response to positive news from the privatization front, including Pakistan Steel, Sui Northern and PTCL, and perception of hike in interest rates.
Although there was active selling on some of the overvalued counters apparently for replacement buying in hot favourites, the KSE 100-share index did not look back and missed its next chart point of 9,100 just by seven points at one stage.
Rising aid pledges ($6 billion) by foreign donors for the rehabilitation of earthquake victims were also considered a bullish factor both for the economy and the bourse in more than one ways, analysts said, adding: “Leading investors remained active buyers despite the fact that prices on some of the counters have assumed an inhibiting level and fraught with high risks.”
The index ended the day with a fresh rise of 56.48 points at 9,072.82 as compared to 9,016.34 a day earlier as leading shares, including National Bank, Pakistan Petroleum and some others, showed smart gains.
National Bank remained under speculative squeeze for the third session in a row as the KSE authorities have to apply circuit-breaker to check further increase in its share value. It ended further higher by Rs8.90 at Rs187.15 amid reports of fresh hike in interest rates after 15 basis point increase in cut-off yield on six-month instruments.
MCB, Bank of Punjab, Faysal Bank some other leading bank shares also rose as investors continued to build up long positions in them. Cement share followed them under the lead of Fauji Cement and DG Khan Cement aided by higher consumption after the reconstruction work starts in the quake-hit areas.
Pakistan Petroleum, which has been under pressure for the last couple of sessions, resumed its upward drive on active short-covering and so did some other leading oil shares at the lower levels.
Floor brokers said the revival of demand in PTCL shares might be speculative but the modest recovery of 20 paisa shows that a fresh Dubai meeting between the Etisalat high-ups and Pakistani delegation was likely to reach a consensus formula to complete the transaction.
National Bank and Siemens Pakistan were among leading gainers, up by Rs8.90 and Rs21, respectively, followed by Aventis, Clover Pakistan, Gillette Pakistan, Honda Atlas, Millat Tractors, Sitara Chemical, Central Insurance and Pakistan Services, which posted gains ranging between Rs4 and Rs8.30.
Losers were led by Nestle Pakistan and Unilever Pakistan, off Rs15 and Rs20, respectively. Others prominent losers included Adamjee Insurance, National Refinery, Attock Petroleum, Rafhan Maize, Clariant Pakistan, Artistic Denim and Grays of Cambridge, off Rs3 to Rs10.
Trading volume rose to 432m shares from the previous 386m shares as gainers finished with a slight edge over losers at 186 to 180, with 50 shares holding on to the last levels.
National Bank again led the list of actives, up Rs8.90 at Rs187.15 on 56m shares followed by Fauji Cement, firm by 40 paisa at Rs27.40 on 55m shares, Bank of Punjab, up 2.60 at Rs103.50 on 49m shares, DG Khan Cement, higher Rs1.65 at Rs104.15 on 44m shares, PTCL, steady by 20 paisa at Rs63.40 on 31m shares, MCB, higher by Rs1.05 at Rs151.50 on 17m shares.
Pakistan Petroleum, up Rs3.65 at Rs208 on 12m shares, led the list of other actives followed by Sui Northern Gas, up Rs1.45 on 18m shares, Fauji Fertilizer Bin Qasim, lower 20 paisa on 16m shares and Faysal Bank, up 95 paisa on 10m shares.
FORWARD COUNTER: National Bank maintained its upward drive on the cleared list also, up Rs8.80 on 12m shares, followed by PTCL, lower 10 paisa at Rs63.15 on 10m shares, while its December contract fell also by the same amount at Rs64.15 on 11m shares, and DG Khan Cement, up Rs1.50 at Rs104.35 on 8m shares, its December settlement also rose by Rs1.95 at Rs106.25 on 9m shares.
Leading shares also rose by accounted for light volumes under the lead of cement, oil, fertiliser and bank sectors.
DEFAULTER COS: Dandot Cement and Unity Modaraba came in for active selling and fell by 10 and five paisa at Rs12 and 55 paisa on 0.152 and 0.329m shares, respectively.
Among the gainers, Quality Steel, Fazal Ghee, and Chenab Fibre were leading, up by one rupee to Rs1.25, while losers were led by Trust Brokerage, Morafco Industries and Ghandhara Industries, off one rupee to Rs2.90.
BOARD MEETINGS: Ghani Automobile, on Nov 25; Pak Modaraba, on Nov 28; Dadabhoy Sack, Escorts Investment Bank, Shield Corporation and Fazal Textiles, on Nov 30.
KARACHI, Nov 24: National Bank on Thursday remained under speculative squeeze and maintained its upward drive apparently to its next target of Rs200 after circuit breakers failed to check a sustained price flare-up for the third session in a row.
Floor brokers said the revival of demand in PTCL shares might be speculative but the modest recovery of 20 paisa shows that a fresh Dubai meeting between the Etisalat high-ups and Pakistani delegation was likely to reach a consensus formula to complete the transaction.
