February 4, 2006	Saturday	Muharram 5, 1427

KARACHI, Feb 3: The KSE 100-share index on Friday breached through three consecutive barriers and finished higher by 260 points or 2.5 per cent in heavy dividend-related and speculative buying in most of the leading base shares triggered by higher interim dividend by Pakistan Oilfields and Attock Petroleum.

But an attractive bait of capital gains amid market talk of higher dividend by bank, oil and cement sectors appears to be the chief inspiring factor behind the weekend bull-run.

MCB, National Bank and Bank of Punjab, D.G.Khan Cement and Lucky Cement, which led the market recovery from the last four sessions’ correction were joined by the leading oil shares under the lead of OGDC and Pakistan Petroleum. OGDC, PTCL and Pakistan Petroleum together hold a weightage of 40 per cent in the index.

The market sentiment was also influenced bullishly to reports that the China Mobile and Singtel were not inclined to improve the bid above $2.6 billion at which it was sold to Etisalat of Dubai.

The KSE 100-share index, which had shed 60 points during the correction phase, not only recouped the loss but also set new record at 10,726.46 points, signalling that the bears have failed to cause any major dent in the prevailing prices. Market capital soared by Rs73.343bn at Rs3,088bn.

The interesting feature was that buying interest again remained confined to the low-priced shares having the potential of capital gains. Leading among them being KESC, PIAC, Fauji Cement, Telecard, Dewan Salman and Bosicor Pakistan.

“The new portfolio setup reflects a major change in the investor buying strategy,” analysts said. “It also shows outflow of big money from the overvalued sectors to those where the potential of capital gains is tremendous.”

Fresh buying in National Bank, D.G.Khan Cement and some other indicates that all those shares could well prove market trend-setters in the weeks to come, partly owing to their financial strength, and partly to strong speculative buying.

“There is no harm to buy a 10-rupee share at twice or thrice of its ruling price as compared to go for speculative stocks ruling 30-time higher than their face value,” says a leading broker adding it is wise to minimize risk factor in an overbought market.

Plus signs dominated the list, major gainers being Millat Tractors, MCB, HinoPak Motors, Engro Chemical, Clariant Pakistan, Colgate Pakistan, Nestle Pakistan, Unilever Pakistan, Grays of Cambridge and Wyeth Pakistan, which posted gains ranging from Rs10 to 50.

Losers were led by Attock Refinery, Atlas Honda, Shell Pakistan and Siemens Pakistan, off Rs5 To 52.75. The others fell fractionally.

Trading volume rose to 638m shares from the previous 497m shares as gainers forced a strong lead over the losers at 248 to 99, with 35 shares holding on to the last levels.

Fauji Fertiliser Bin Qasim again topped the list of actives, up 80 paisa at Rs43.55 on 65m shares followed by D.G.Khan Cement higher by Rs4.65 at Rs.134.45 on 53m shares, OGDC, up Rs6.20 at Rs130.90 on 52m shares, MCB, higher by Rs10.45 at Rs224.95 on 37m shares, Fauji Cement, firm by Rs1.20 at Rs25.85 also on 37m shares, National Bank, up Rs3.75 at Rs259.15 on 32m shares and Pakistan Petroleum, higher by Rs7.95 at Rs223.65.

Other actives included Lucky Cement, higher by Rs4.95 on 35m shares, Bank of Punjab, up Rs2.40 on 20m shares and PTCL, higher by 50 paisa on 19m shares.

FORWARD COUNTER: OGDC led the list of actives on this counter, up Rs6.30 at Rs132.80 on 17m shares followed by Fauji Fertiliser Bin Qasim, firm by 85 paisa at Rs43.75 also on 17m shares, and Lucky Cement, higher by Rs5 at Rs105.30 on 16m shares.

Other actives were led by D.G.Khan Cement, up Rs3.30 at Rs136.50 on 16m shares and MCB, higher by Rs10.40 at Rs227.40 on 13m shares. Some others were also traded higher amid light trading.

DEFAULTER COs: Dandot Cement came in strong support and finished with a gain of one rupee at Rs12.80 on 1.547m shares followed by Crescent Standard Bank, higher also by one rupee at Rs12.85 on 0.627m shares. Others were modestly traded but mostly on the higher side.

DIVIDEND: Attock Petroleum, cash interim at the rate of 40 per cent, Pakistan Oilfields, interim 75 per cent, Fauji Cement, interim 10 per cent, Polyron, interim 2.5 per cent, and Pakistan Industrial Leasing, right shares 20 per cent.