KARACHI, July 12: Stocks on Wednesday extended the overnight run-up on active follow-up support originating mainly from the institutional traders and leading punters but retailers remained conspicuous by their absence.
The interest was, however, terribly selective and confined to a dozen current actives, indicating that investors are not inclined to move out from the safe havens in the backdrop of negative political news including the Mumbai killings.
The KSE 100-share index rose by another 264.73 points or 2.74 per cent at 9,920.66 as compared to 9,655.93 a day earlier as all the leading base shares ended further higher under the lead of OGDC, National Bank, MCB and Pakistan Petroleum.
A sharp increase in the traded volume indicates a positive change in the investor buying strategy apparently based on corporate earnings rather than external factors but it appears to be a positive change as the turnover figure in the last couple of weeks has fallen to a modest proportions.
Reports that US forensic investigators have started probe into the market crash of March 2005 seemed to have been ignored by most of the investors as was reflected by the steep rise in the index.
A leading stock analyst warned that the outcome of forensic investigations pinpointing the erring brokers could reverse the current market trend.
Interim and final accounts of some of the leading companies, notably in bank, cement and oil sectors for the period ended June 30, 2006 are around and investors are taking positions at the current lower levels as most of them still ensure handsome capital gains.
The news from the corporate sector are fairly promising and those who have some peep into the market’s future trend are out to buy shares of their choice at the current levels, says an analyst.
However, it is very intriguing to note that both the financial institutions and the leading investors are not inclined to go beyond a dozen active shares and that could be a deceptive game, some analysts fear.
Plus signs again dominated the list under the lead of Arif Habib Securities and Unilever Pakistan, up by Rs20 and Rs95, followed by Pakistan Reinsurance Co, Habib Insurance, Lucky Cement, National Refinery, Attock Petroleum, PSO, Shell Pakistan, Pakistan Refinery, OGDC, ICI Pakistan, National Foods, Pakistan Petroleum and Pakistan Oilfields, which posted gains ranging from Rs5 to Rs11.20.
Colgate Pakistan was leading among the losers, off Rs13. Other declines were mostly fractional barring Singer Pakistan, Indus Motors, Askari General Insurance and Ahmed Hassan Textiles, off Rs1.70 to Rs2.05.
Trading volume rose to 209m shares from the previous 131m shares as gainers topped losers by 198 to 83, with 40 shares holding on to the last levels.
National Bank came in for active follow-up support and rose by Rs2.25 at Rs226.25 after having touched the session’s high at Rs230.45, on 30m shares followed by D.G. Khan Cement, firm by Rs3.05 at Rs91.50 on 22m shares, OGDC, up by Rs6.25 at Rs131.35 on 22m shares, MCB, higher by Rs1.85 at Rs219.35 on 20m shares, Lucky Cement, up by Rs5.15 at Rs108.90 on 13m shares, Pakistan Petroleum, higher by Rs10.25 at Rs215.50 on 12m shares and Pakistan Oilfields, firm by Rs8.20 at Rs319 on 7m shares.
Other actives were led by Bank of Punjab, steady by 75 paisa on 10m shares, Fauji Cement, up by Re1 also on 10m shares and Fauji Fertiliser Bin Qasim, higher by Re1 on 5m shares.
FORWARD COUNTER: National Bank again led the list of actives on the cleared list, up by Rs3 at Rs227 on 10m shares followed by MCB, up by Rs1.90 at Rs220.65 on 7m shares and OGDC, higher by Rs6.30 at Rs132.30 on 5m shares.
Pakistan Petroleum followed them, higher by Rs10.30 at Rs216.95 on 5m shares and D.G. Khan Cement, higher by Rs3.35 at Rs92.10 on 4m shares.
DEFAULTER COS: Trading on this counter failed to pick up as investors remained busy in the ready counter owing to return of a bull market. Price changes were fractional but fractional.
BOARD MEETINGS: Atlas Fund of Funds, Atlas Income Fund, Atlas Stock Market Fund on July 19, Gillette Pakistan on July 20, Clariant Pakistan on July 24, BOC Pakistan on July 25 and Siemens Pakistan on July 27.
