KARACHI, Dec 5: Stocks on Monday resumed trading on a bullish note as investors continued to build up long positions on all the counters followed by predictions of a sustained run-up to the previous index level of 10,300 points. The market also witnessed a major shift in the buying interest as investors opted for low-priced shares having potential of capital gains rather than the overvalued ones and for good reasons too. Some of the current favourites appear to have already touched their saturation level and could attract selling any time but followed the general rally aided by oil, bank, auto and some other sectors
The market’s optimism about future outlook could by imagined from the fact that the KSE 100-share index breached through the barrier of 9,300 points on massive index-related buying, signalling that its next chart point could be 10,000 and possibly beyond.
The index finally finished with a fresh smart rise of 118.29 points or 1.3 per cent at 9,344.70 as compared to 9,226.41 at the last weekend session. The opening upward drive has reinforced the investor perception of further increase in most of the low-priced shares.
PTCL led the extended rally amid rumours that the deal with Etisalat has been reached with some changes in the original document relating to payment schedule details which are expected to be announced shortly.
Fauji Fertilizer Bin Qasim, OGDC, MCB, Fayal Bank, Nishat Mills and TRG Pakistan among the low-priced shares were some other outstanding gainers.
The market also welcomed the appointment of a woman governor of the State Bank of Pakistan for the first time in the bank’s history as was reflected by a fresh buying surge in leading bank shares.
There is no specific background news from the corporate or economic front to which the sustained run-up could be attributed that too in the backdrop of latest tussle between the SECP and bourses over non-member chairmen.
“The current run-up appears to be a straight fight between the contenders of power as leading brokers and bourse members seem to have decided to fight on the issue on the KSE floor rather than official talks,” analysts said.
But unlike the previous tussles on CFS, March market collapse and some others, the bourses have put up a massive show of strength and are out to go alone to attain the new index level irrespective of fresh irritants, they said.
“In the final analysis, it could well be a no-win situation for one of them as the directive is expected to stay in place sans official intervention at the highest level,” some others said.
“The market’s upward drive appears to be speculative and leading analysts warned investors, notably small ones, to play safe as anything could happen if the bourses opted to go alone on the chairmen issue.”
Plus signs dominated the list, Wyeth Pakistan and Unilever Pakistan being the top gainers, up Rs50 each, followed by Attock Petroleum and Pakistan Refinery, up by Rs13.15 and Rs21.75, respectively.
Other prominent gainers were led by United Bank, on reports of higher earnings, Askari Bank, Mustehkam Cement, PSO, Shell Pakistan, Mari Gas, International Industries, Al-Ghazi Tractors, Dawood Hercules, Engro Chemical, Clariant Pakistan, Abbott Lab, Jahangir Siddiqui & Co and Suzuki Motors, which posted gains ranging from Rs5 to Rs9.95.
Nestle Pakistan and Siemens Pakistan fell by Rs25 and Rs43.95, respectively, and so did Ferozsons Lab, Yousuf Textiles, Arttistic Denim, Grays of Cambridge and AKD Securities, off Rs4.45 to Rs14.25.
Trading volume rose to 487m shares from the previous 385m shares as gainers maintained a strong lead over losers at 244 to 112, with 38 holding on to the last levels.
Fauji Fertilizer Bin Qasim, which topped the list of actives on reports of higher interim earnings, up Rs1.90 at Rs40.10 on 84m shares, followed by PTCL, higher by Rs1.55 at Rs65.60 on 77m shares, OGDC, steady by 30 paisa at Rs114.30 on 30m shares, MCB, higher by Rs4.15 at Rs168.40 on 21m shares, DG Khan Cement, firm by 55 paisa at Rs108.80 on 18m shares, Nishat Mills, higher by Rs4.20 at Rs109.35 on 16m shares and Faysal Bank, up Rs1.80 at Rs73.95 on 16m shares.
Other actives were led by TRG Pakistan, firm by 30 paisa on 15m shares, Pakistan Cement, up 70 paisa also on 15m shares, and National Bank, higher one rupee on 13m shares.
FORWARD COUNTER: Fauji Fertilizer Bin Qasim also came in for strong covering purchases on this counter, up Rs1.90 at Rs40.55 on 23m shares, followed by MCB, higher by Rs3.65 at Rs169 on 17m shares and PTCL, up Rs1.60 at Rs66.50 on 11m shares. OGDC followed them, firm 45 paisa at Rs114.95 on 7m shares and Nishat Mills, higher by Rs4.05 at Rs110.95 on 8m shares. Some others, notably in the fertilizer and oil sectors, also performed well.
DEFAULTER COS: Schon Modaraba came in for active support and rose by 45 paisa at Rs2.65 on 1.690m shares, followed by Dandot Cement, unchanged at Rs12.20 on 0.215m shares, Indus Polyester, higher 25 paisa at Rs5.05 on 0.207m shares, and Unity Modaraba, higher by 15 paisa at Rs0.85 on 0.158m shares.
Among leading gainers Central Forest, Dewan Autos and Ghandhara Industries were on the list, which rose by one rupee to Rs2.05, while Morafco Industries suffered a fresh fall of Rs2.55 at Rs48.90.
