KARACHI, May 25: Stocks on Friday remained in an upbeat mood and despite weekend selling managed to finish with fresh gains amid an actively traded session as the volume figure soared to well over 400m shares. The KSE 100-share index ended with a clipped gain of 69 points but above the new barrier at 12,732.41 points.
However, fractional price changes sans flare-ups associated with a bull market, in most of the highly liquid high-profile scrips reflect that most of them have already touched their saturation point.
The chief inspiring factor behind the weekend rally was rumours that the KSE was seeking a meeting with the prime minister to resolve the CFS issue, which is being quoted around its limit of Rs55 billion, a leading analyst Ashraf Zakaria said, adding “that could take the index to its near-term target of 13,000 points or above it”.
The KSE 100-share index breached through the barrier of 12,700 in the morning session and sustained it indicating that the near-term target of 13,000 could be hit possibly by the next week.
But it is wrong to say that it is all-time higher level so far as this is a two-way continuing process and could not be relied upon, analyst Ahsan Mehanti said.
During the evening session some of the leading shares attracted profit-selling and pushed it modestly lower from the session peak level, up 120 points but finished with a clipped gain of 69 points at 12,732.41.00 as compared to 12,663.41 a day earlier.
“The index’s upward thrust in the backdrop of political uncertainty and two opinions about the judicial crisis appears to be a speculative game of numbers and may not lead to the idea of genuine breakthrough,” some analysts said, adding “there is a possibility of a reversal at the same speed at which the index is galloping”.
The index has risen by 26 per cent during the last five months without any significant correction and that may come any time in a bigger way, said a leading analyst.
Corporate earnings by the cement, auto, banks and oil sectors may be on the higher side, but in no way suggest the meteoric rise in the index, they said.
“The current rise in the index appears to be deceptive as the market has more depressants as compared to morale boosters,” says a leading analyst, adding “push prices of leading base shares, notably MCB, OGDC, National Bank, Pakistan Petroleum, Bank of Punjab and some others and add as many points to it as you like”.
But some others said the profitability of some of the leading sectors, notably cement and auto sectors was around 34 per cent and 39 per cent and some others in the same percentage ratio, it could keep the market in a positive mood in the coming months also.
Leading gainers were led by Siemens Pakistan and Colgate Pakistan, up by Rs20.10 and Rs21, followed by Millat Tractors, Pakistan Resource Insurance, JS & Co, Unilever Pakistan and Lakson Tobacco, which posted gains ranging from Rs8 to Rs16.20. There were several other good gainers also.
Losers were led by Mari Gas and MCB, off Rs5.55 and Rs6.05 respectively. They were followed by Huffaz Pipes, Service Industries, Ghani Glass, HinoPak and Gillette Pakistan, which suffered fall ranging from Rs3 to Rs5.
Trading volume rose to 410m shares from the previous 333m shares as most of the recent actives came in for renewed support. Gainers held a comfortable lead over the losers at 194 to 155, with 40 shares holding on to the last levels.
OGDC topped the list of actives, up by Rs1.30 at Rs122.50 on 48m shares, followed by Fauji Fertiliser Bin Qasim, steady by 50 paisa at Rs37.55 on 27m shares, Bank of Punjab, firm by 15 paisa at Rs112.50 on 24m shares, National Bank, higher by Rs4.90 at Rs252.40 on 22m shares and Pakistan Cement, up by Re1 at Rs13.75 on 18m shares.
Other actives were led by D.G. Khan Cement, steady by 65 paisa on 15m shares, Nishat Mills, off 95 paisa on 15m shares, Lucky Cement, off Re1 on 14m shares, Bank Alfalah, lower 10 paisa on 13m shares and Askari Bank, up by 55 paisa on 13m shares.
FORWARD COUNTER: Both settlements of the OGDC followed the lead of their counterpart in the ready section and rose Rs1.50 and Rs1.39 for May and June contacts at Rs122.50 and 121.79 on 6m and 8m shares respectively, while National Bank rose by Rs5.40 at Rs255 on 6m shares, but MCB fell by Rs4.19 at Rs326.30 on 5m shares.
Bank Alfalah rose by 50 paisa at Rs37.85 on 5m shares, while others were modestly traded on light turnover.
