KARACHI, May 3: Stocks on Thursday took a technical pause as a section of investors took profits on a number of counters at the inflated levels but all the offers were well-absorbed both the rise and the fall.
After having risen to new highs during the last couple of weeks, the market was in a highly overbought position and needed a correction that came in the form of profit-selling but there were buyers at each dip, reflecting that the current run-up is not overdone.The KSE 100-share index early rose to session’s high of 12,483.48, what the analysts called spill over of overnight demand. Late selling, however, pushed it fractionally lower by 3.06 points at 12,430.16 points.
But on the other hand free-float 30-share index managed to finish with a fresh modest gain of 16.48 points as most of the industrial shares ended with fresh gains.
Analysts said National Bank along with other current favourites could lead the market advance in the coming sessions as it is expected to receive a tremendous boost from the bonus issue in the ratio of two for one share (2:1) by the Saudi-based Bank Al-Jazira.
National Bank has 6.5 per cent stake in it and its share holding in the Saudi bank will swell to 13.12m shares. But some others said the boost will come in sympathy with increase in the share of Bank Al-Jazira, which is currently ruling on the lower side. National Bank share did rise by Rs1.50 at Rs250.90.
“The technical reaction was long overdue as the market was in a highly overbought position owing to persistent rise during the last couple of weeks but it was delayed because of advent of strong foreign buying,” analysts said.
However, the fractional fall of 3.06 points shows that the bulls are not inclined to take profits at the current levels anticipating the continuation of the bull-run.
“Analysts at Morgan Stanley may have more than one reason to predict near-term peak level of 14,000 points for the KSE 100-share index,” says a local analyst adding “they have based their assessment on the higher corporate earning, dividend yield and a stable economy.”
Viewed in this backdrop, the bulls just have taken a technical pause hoping that the best is still to come, he added ruling out the possibility of mid-year market crash as it did last year after an identical run-up.
Among the top gainers, Fateh Textiles and Siemens Engineering were leading, up by Rs27 and 64.75. They were followed by Javed Omer, Sapphire Fibres, Pakistan Engineering, Ferozsons Lab, ICI Pakistan, Bata Pakistan, Engro Chemicals, Pakistan Refinery, J.S.Global and Adamjee Insurance, which posted gains ranging from Rs5 to 11.70.
Prominent losers were led by Rafhan Bestfoods and Murree Brewery, off by Rs38.95 and 4.40, respectively, followed by PSO, Indus Motors, Ghandhara Nissan, Highnoon Lab, Merit Packaging and Murree Brewery, off by Rs3.05 to 4.40.
Trading volume showed a sharp decline but stayed well above the 300m share mark at 309m shares as compared to 369m shares a day earlier but losers forced a strong lead over the gainers at 192 to 1486, with 43 shares holding on to the last levels.
Fauji Fertiliser Bin Qasim topped the list of actives, higher by Rs1.50 at Rs36.40 on 40m shares followed by Lucky Cement, up Rs1.55 at Rs105.55 on 31m shares, Pakistan Petroleum, easy five paisa at Rs267.95 on 19m shares, OGDC, lower 90 paisa at Rs122.85 on 16m shares, D.G.Khan Cement, up 90 paisa at Rs100.50 on 15m shares, National Bank, higher by 1.55 at Rs250.90 on 11m shares and Pakistan Oilfields, lower by Rs2 at Rs350 also on 11m shares.
Other actives were led by Pakistan Cement, easy five paisa on 10m shares, Azgard Nine, higher by Rs1.40 on 9m shares and Bank AlFalah, lower by Rs1.05 also on 9m shares.
FORWARD COUNTER: Fauji Fertiliser Bin Qasim also led the list of actives on the cleared list and was quoted higher by Rs1.05 at Rs36.20 on 10m shares followed by Lucky Cement, higher by Rs1.55 at Rs106.20 on 8m shares and Pakistan Oilfields, off Rs2.75 at Rs351.95 on 4m shares.
National Bank followed them, up by Rs1.10 at Rs251.60 on 4m shares and Pakistan Petroleum, lower 90 paisa at Rs269 also on 4m shares.
DEFAULTER COS: Norrie Textiles came in for active selling and ended lower by 15 paisa at Rs1 on 0.940m shares followed by Nimir Chemicals, lower 10 paisa at Rs3.70 on 0.762m shares and Unity Modaraba, unchanged at 55 paisa on 0.353m shares.
S.S.Oils followed them, lower by 30 paisa at Rs9.05 on 0.184m shares and Japan Power, easy 10 paisa at Rs3.90 on 0.112m shares.
