Stocks cross 11,000-point barrier on foreign buying
By Our Staff Reporter
KARACHI, Jan 25: The KSE 100-share index on Thursday breached through the psychological barrier of 11,000-point boosted by fresh heavy foreign and local buying in the leading bank and oil shares amid a briskly traded session.
Analysts predict the current bull-run is expected to be sustained during the coming sessions beyond this level on the strength of corporate announcements. It was up by 175 points at 11,031.08 amid year’s higher volume of 335m shares.
Pakistan Petroleum led the market run-up followed by the announcement of interim cash dividend of 45 per cent and higher half yearly earning of 12.30 per cent, rising by Rs12.40 at Rs260.90.
A renewed price flare-up in the leading base shares, notably MCB, National Bank, OGDC and PTCL, some of which ended above their upper locks, reflects that the buying euphoria and speculative support is not based only on higher earnings but also demonstrate foreign interest in some of them particularly in oil ones, they added.
MCB finished with an extended gain of Rs10 followed by Pakistan Petroleum, up by Rs12.40 and National Bank, higher by Rs5.75 amid higher volumes.
The KSE 100-share index posted a fresh gain of 174.34 points or 1.61 per cent at 11,031.08 as compared to previous 10,856.74 points. The KSE 30-share index followed it, up by 241.33 points at 13,932.42 points.
“It is virtually racing to improve its previous all-time record high of 12,336.00 points before the legendary March,” a leading analyst Ahsan Mehanti predicts.
But Ashraf Zakaria, an analyst, said developing situation on the external front worried most of the investors and that was perhaps why they were a bit reluctant to go all-out.
Apart from strong foreign buying in selected bank and oil shares, expectations of higher payouts appear to be chief motivating force behind the current run-up, floor brokers said, adding that an interim dividend of 58 per cent by Lakson Tobacco and upcoming announcements by Fauji Fertiliser and some others could further intensify the current run-up”.
Plus signs dominated the list under the lead of Siemens Pakistan and Wyeth Pakistan, up by Rs90 and Rs59.50, Arif Habib Securities, Treet Corporation, MCB, Pakistan Petroleum, Dawood Hercules, Nestle Pakistan and Lakson Tobacco followed them, up by Rs9.40 to Rs21.70.
Leading losers were led by Clariant Pakistan and International Industries, off Rs6.15 and Rs12.55. Other to follow them were Pakistan Hotels,J WD Sugar, IGI Insurance, Pakistan Tobacco and Sanofi-Aventis, off Rs3 to Rs5.
Trading volume rose to 335m shares from the previous 216m shares as gainers held a modest lead over the losers at 150 to 137, with 51 shares holding on to the last levels.
The most active list was topped by OGDC, up by Rs3.25 at Rs121.25 on 59m shares followed by Pakistan Petroleum, higher by Rs12.40 at Rs260.90 on 41m shares, National Bank, firm by Rs5.75 at Rs274.50 on 32m shares and D.G. Khan Cement, up by Rs1.65 at Rs70.50 on 20m shares.
Bank of Punjab, steady by Rs1.50 at Rs110.45 on 19m shares, MCB, higher by Rs9.40 at Rs297 on 17m shares and PTCL, up by 80 paisa at Rs51.45 on 14m shares.
Other actives were led by Fauji Fertiliser Bin Qasim, steady by 10 paisa on 16m shares, Nishat Mills, higher by Rs4.25 on 10m shares and Faysal Bank, up by Rs1.30 on 9m shares.
FORWARD COUNTER: OGDC also led the list of actives on this counter, higher by Rs3.35 at Rs122.20 on 11m shares, while its January contracts rose by Rs3.20 at Rs121.10 on 6m shares.
Pakistan Petroleum followed them, higher by Rs12.52 at Rs263.02, followed by National Bank, up by Rs6.40 at Rs277.10 on 7m shares, while others were modestly traded on the higher side.
DEFAULTER COS: Crescent Standard Bank came in for active selling at the higher levels and fell by 20 paisa at Rs4.35 on 0.805m shares followed by Norrie Textiles, up by five paisa at Rs3.85 on 0.259m shares and Indus Polyester, steady by five paisa at Rs4.05 on 0.200m shares. Zeal Pak Cement and Nimir Chemical were also actively traded but on the lower side.
DIVIDEND: Pakistan Petroleum interim cash 45 per cent and 30 per cent on preference share, International Industries, interim 25 per cent, Lakson Tobacco, interim cash 58 per cent.
