|
|
|
| April 30, 2007 | Monday | Rabi-us-Sani 12, 1428 |
Investors’ optimism boosts KSE index
THE KSE 100-share index confidently consolidated well above the psychological barrier of 12,000 points allaying fears of market crash as it did a year ago after having crossed the Rubicon in an identical bull-run.
Both the KSE 30-share and 100-share indexes managed to finish with fresh gains of 107.47 and 143.66 points at 15,164.23 and 12,235.19 points respectively adding Rs86 billion to the market capital at Rs3,578.544bn, amid rising daily volumes.
The index may not be eyeing its next best level of 13,000 points in the near-term, but predictions by a foreign-rating agency, based on positive economic data and corporate payouts and interim earnings by blue chip counters, is that it could touch the mark of 14,000 points during the current year.
“The strong presence though on selected counters of some of the leading foreign funds may not be based on speculation, it may have some genuine reasons behind it, notably the sell-off of some of the leading oil giants like PSO and Pakistan Petroleum.
Positive news of rise in profits and interim cash dividend did not allow the market to fall below the recently attained peak levels during the previous week despite the presence of some negative factors as investors were not deterred to build-up long positions on selected counters and for good reasons too.
Advent of client-level netting (CLN) regime on the forward counter, worries about the CFS as its limit was no raised from the current Rs55 million, and prevailing judicial crisis should have worked against the underlying sentiment, but bulk of the selling was absorbed on analyst’s perceptions of continued bull-run.
Higher corporate announcements, notably interim dividend by Pakistan State Oil and OGDC at 40 per cent and 20 per cent respectively, 60 per cent and 35 per cent interim already paid, kept the investors’ interest alive. Board meetings of some of the banks and cement companies are due next week. MCB has also come out with an interim cash payout of 25 per cent.
Click to view the larger image
Investors’ optimism about the future of shares market is also well-reflected in the KSE 100-share index, which stood firm above the level of 12,000 at 12,235.19 as compared to 12,091.53 a week earlier, up 143.66 points, for the second week in a row.
“So far, as the index could stay above the barrier of 12,000 points, there is no chance for bears to play a role in near future”, says a leading broker. “Moreover the current technical correction seems to have run its course, after having chipped well over 100 points”, he adds.
“If there is a downward breach in the index below the 12,000 level, it could shed another 200 to 300 points in the coming sessions, flutters triggered by higher corporate earnings here and there notwithstanding”, says the analyst.
Essentially, it was the continuation of last week’s rebound despite highly inflated level attained by some of the blue chips, but analysts ruled out the possibility of any major shakeout at this stage.
A sharp rise in share value of insurance, bank, cement and oil sectors partly on higher earning reports and partly to positive response to new insurance policy, indicates that this sector could attract fresh support at current levels and join the rank of market trend-setters.
They apparently based their future market perception on the unfolding of corporate scenario during the current week, notably interim board meetings of some of the leading companies, including OGDC, Pakistan Petroleum, Engro Chemicals, Bank Alfalah and ICI Pakistan.
According to them their pre-tax profits this year are much higher than those of last year’s and what is important is that some of them could come out with handsome dividend or bonus shares.
The profit-selling here and there at higher levels is not that aggressive to cause major dents in the prevailing price structure.
FORWARD COUNTER: Leading shares on the cleared list also followed the lead of their counterparts in the ready section and rose sharply higher amid active daily business.
Most active and leading gainers among them were Pakistan Petroleum, MCB, National Bank, Bank Alfalah, OGDC, Lucky and D. G. Khan Cement, Bank of Punjab and some others. The implementation of CLN took its toll in early trading.—Muhammad Aslam
|
|
|
|
